What China wants:
Threaten India saying 1962, when Nehru neglected army. And make India with draw. If India does not withdraw, may be a limited war to damage India economically.
What India should do:
In-case China mobilises Army, do the same. Stop trade with China and use 80 billion trade deficit to invest in nuclear missiles and fund army. Chinese have to keep long supply lines over Tibet. Every Indian works part time for free and hit Chinese trade abroad. Chinese growth rate falls below 4% or less.
If China tries to do limited war. Escalate till nuclear weapons. Nuke Han area... Chinese goes behind 1000 years permanently, nothing grows for in China for 1000 years...
If India fails to escalate to nuclear weapons, India will have to leave with shame. Better to nuke a few Bejing Shanghai etc and die...
What better death, than death on battlefield.
Fight fearful odds. For ashes of our fathers and Temples of our Gods.