China needs to leave some rope for India to hang itself when it makes another miscalculation. Maintaining ambiguity on the LAC keeps India off balance, which is something the Chinese can work with; India needs to be seen as the aggressor, as Modi has so perfectly implied in this border skirmish, hence why he is now quiet.
China doesn’t want to kinetically utterly destroy Indian forces (unless it has to), but use just the right amount of coercion to cause paralysis India’s decision making, forcing a diplomatic agreement which favors Beijing.
Indian pipe dreams are only temporarily tempered. they will come back as soon as they get a large shipment of foreign weapons. Their economy and the effects of decoupling from China without a soft landing through better deals with Western countries is what will really pop their bubble. They may soon be less competitive without access to the Chinese supply chain and the west maybe getting more protectionist when it comes to Indian services (with suspension of the H1B Visas). The revolt of the middle class Indians may soon be upon Modi and his ilk.
