Tensions soared between the world's two most populous nations in June after the deadliest fighting in decades erupted between Indian and Chinese troops on the Himalayan border.
"The situation on the ground continues to cool down and de-escalate," foreign ministry spokesman Wang Wenbin said at a regular press briefing.
"The frontline border troops of the two countries have already completed disengagement at most places," he told reporters in Beijing.
Wang said the two sides were preparing for a fifth round of talks between military commanders at an unspecified date.
After the clash on June 15, Chinese and Indian officials met and agreed to take steps to ease the situation.
But the nuclear-armed neighbours have continued to reinforce the border between Ladakh and Tibet. India has deployed thousands more troops and is conducting extra military flights over the mountainous region.
Meanwhile, anti-China sentiment has soared in India since the fight, which sparked street protests and calls for Chinese products to be banned in the nation of 1.3 billion people.
The Indian government has now banned dozens of Chinese apps including the highly popular video-sharing platform TikTok over national security and privacy concerns.
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