Photo released by Prime Minister Office on Wednesday shows Pakistan's Prime Minister Imran Khan (front L) chairs a National Security Committee meeting along with armed forces chiefs and other government officials in Islamabad, capital of Pakistan. Pakistan on Wednesday decided to suspend bilateral trade and downgrade its diplomatic relations with India in a meeting of the National Security Committee chaired by Prime Minister Imran Khan, the Prime Minister Office said in a statement. (Prime Minister Office/Handout via Xinhua)

India's decision to scrap the special status of Indian-controlled Kashmir increased regional instability and will surely backfire on India's interest in the end, Chinese experts said Thursday, urging India to peacefully resolve its conflict with Pakistan. 

On Wednesday night, Pakistan suspended trade with India and downgraded its diplomatic relations after a high-level meeting chaired by Prime Minister Imran Khan on Wednesday in response to India's move.

Khan activated all diplomatic channels to expose the brutal Indian "racist" regime and human rights violations, the government of Pakistan announced on Wednesday, the Pakistani government's official twitter account said.

India on Thursday called Pakistan's decision to downgrade diplomatic ties an attempt to present an alarming picture to the world about their bilateral relations, and urged Islamabad to review its decision, Indian news agency PTI reported. 

The report quoted India's Ministry of External Affairs as saying that India regrets the steps announced by Pakistan on Wednesday and insists that its decision is an internal affair.

The escalating tensions in Kashmir will pose a severe challenge to India's and the whole region's security, Zhao Gancheng, director of the Center for Asia-Pacific Studies at the Shanghai Institute for International Studies, told the Global Times.

Hu Zhiyong, a research fellow at the Institute of International Relations of the Shanghai Academy of Social Sciences, warned that India's move could invite a possible war between the two countries.

This move also caused concern over the possible oppression in the predominantly Muslim territory, and will invite criticism from the Muslim world, Hu said. 

Zhao suspects that Modi government was boosted by the Bharatiya Janata Party sweeping victory in the election this year, and also to divert attention from the slowing economy. 

The international community also opposes India's move. The Washington Post published an editorial on Tuesday, saying "this is the Modi government's darkest moment," while the Guardian warned that India's move is "incendiary and wrong."

According to reports, India's move also involves an announcement of Ladakh as Union Territory, where there is the western sector of the China-India boundary.

In response, Chinese Foreign Ministry spokesperson Hua Chunying said on Tuesday that "India has continued to damage China's territorial sovereignty by unilaterally modifying its laws. This is unacceptable and will not have any effect."

"We urge the Indian side to be cautious on the border issue, strictly abide by the relevant agreements of the two sides, and avoid taking actions that further complicate the border issue."

When asked about China's stance on the situation, Hua said on Tuesday that China's stance on this issue is "clear and consistent." 

"The relevant sides need to exercise restraint and act prudently. In particular, they should refrain from taking actions that will unilaterally change the status quo and escalate tensions," said Hua.