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Though not a part of Indian territory, the plateau holds immense strategic importance for Delhi and is vital to its geopolitical interests.
"The area in contention is extremely close to a very vulnerable stretch of Indian territory that effectively connects the bulk of India to its northeastern states," Shashank Joshi, senior research fellow at the Royal United Services Institute (RUSI) in London told CNN.
"Additional construction could skew the local balance of power in China's favor, essentially leaving India more vulnerable to invasion in case of a military confrontation with Beijing."
Tri-region issue
India and Bhutan have maintained historically strong relations. Bhutan co-operates closely with India in determining its foreign policy, and the Indian Army is involved in the training of its armed forces.
China, which does not have formal diplomatic ties with Bhutan, has denied that it has violated any treaties.
"China's construction of road in Doklam is an act of sovereignty on its own territory. It is completely justified and lawful, and others have no right to interfere."
Lu added that it was "utterly unjustifiable" for the Indian side to interfere in issues between the two countries.
Ongoing dispute
The Doklam dispute is the latest in a long-running series of territorial flare-ups between India and China. In 1962, the two countries engaged in a bloody border war, and skirmishes have continued to break out sporadically in the decades since.
Council on Foreign Relations senior fellow Ely Ratner told CNN the current dispute was an indication of the challenges China faces as a global leader.
"It goes to show how hard it's going to be for China to lead the region when core elements of its foreign policies are so ideological, uncompromising, and irreconcilable with its neighbors and other major powers."