The minister was asked to comment on the situation after Chinese troops entered the Indian territory in Daulat Beg Oldi (DBO) sector in eastern Ladakh and erected a tented post.
"We are addressing this issue in an appropriate manner. We just do not want any departure from proportionality. I do not think we should allow this to get beyond the immediate area and we should retain at that level and not allow it to escape that level," Khurshid said.
The issue was raised by India after the incident came to light some time ago.
A platoon-strength contingent of China's People's Liberation Army (PLA) came 10km inside the Indian territory in Burthe in DBO sector, which is at an altitude of about 17,000feet, on the night of April 15 and established a tented post there.
Khurshid declined to comment on the issue of "leakage" of the draft JPC report on 2G spectrum scam.