Sichuan in the southwest, which includes several ethnically Tibetan areas, set up a "law enforcement squad" of cultural bureau personnel, police and other officials to enforce the drive, reported the Global Times, which is close to the ruling Communist party.
The aim was to "crack down on pornography and illegal publications, which include portraits of the Dalai Lama" ahead of the Lunar New Year, it quoted Gou Yadong, director of the provincial publicity department, as saying.
The Global Times also cited Lian Xiangmin, of the China Tibetology Research Centre in Beijing, as saying that for Chinese people, hanging his picture was the same as displaying Saddam Hussein's image would be for Americans.
The former Iraqi leader was executed in 2006 after being convicted of crimes against humanity, while the Dalai Lama, who fled Tibet after a failed uprising against Chinese rule, was awarded the 1989 Nobel Peace prize.
The move in Sichuan comes as Beijing steps up a campaign against the spiritual leader, who is still widely revered by Tibetans.
China denies repression of minorities and says its massive investment in Tibet has brought development to a formerly poverty stricken region.
"At present the two sides have reached a roadmap to find a
solution based on political parameters and guiding principles. They have also reached the important consensus that they are committed to an equitable, reasonable solution acceptable to the two sides," he said.
Last year China also protested the visit of then American Ambassador to India, Richard Verma to the area.
The India-China border dispute covers the 3,488 km long Line of Actual Control (LAC).
While China claims Arunachal Pradesh as Southern Tibet, India asserts that the dispute covered Aksai Chin area which was occupied by China during 1962 war.
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