Dealing with India, you can only do it from position of strength. Just look at how the Indians treat their other weaker neighbors. What China did was propotionate. The US will still sell weapons and intelligence to India whether there is war or not. Under trump, the US has publicly announced it want to be the world's arms dealer. India will also buy them whether there is war or not, the question is how much the Indians are willing to fork. Now the situation is deescalating, which is good, though the tension is still high. But China can't retreat from its position now, otherwise when the Indian road is finished, China will be at disadvantage.