GUWAHATI, Feb. 20 -- China is reportedly continuing with the construction of border villages in the disputed territory with Bhutan, despite ongoing border talks between the two nations.

According to the Hong Kong-based South China Morning Post, at least three villages have been constructed in the mountainous region that separates the two countries, with some villages doubling in size.

The rapid expansion of these villages began as part of a poverty alleviation scheme but also serves a dual national security purpose, according to officials from the ruling Chinese Communist Party.

In a remote Himalayan village within a disputed border zone, 18 new Chinese residents were seen entering their newly built homes, each carrying a framed portra...