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Another indicator of less capital outflows, China's forex reserves rose for the fourth month in a row in May to total .05 trillion, an increase of billion from a month earlier.

Any deal would add to the billion of acquisitions announced this year targeting European alternative energy assets, according to data compiled on the sector. Wind-related businesses have proven popular with bidders, as countries in the region push for greater reliance on renewable energy sources.

Apart from sanctions, Chen said China will not rule out the possibility of taking other actions as well. "The PLA has the means, capability and will to safeguard national sovereignty and territorial integrity. This determination and ability should not be questioned," he said.

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Another place of Chinese heritage in Kolkata is Tiretta Bazaar, also known as Old China Market, of which Melwin Chiu Chieh Ming is a third-generation Chinese-Indian.