The economic relationship between India and China is getting more important. Although China has a bigger economy, India is now an economy that cannot be ignored. Also, the trade relationship is more to China's advantage. Most of the products that China exports to India are also made in India (maybe at slightly higher price). So India will not be too badly affected if there is any disruption in trade.
That could be why China this time agreed to a ban on Jamaat-ud-Dawa. India should use economic leverage to promote responsible behavior by China. India should indicate that nuclear or missile assistance to Pakistan will have an economic price.
There is absolutely no civilizational conflict between India and China - the friendly relations go back thousands of years. Nor is there any hostility on a people-to-people level.