I find this semantics very troubling. The space between blue line and dotted pink line is the current dispute and where all the stand off is taking place (as far we we're told and can tell).
This area is neither Chinese or Indian territory.
A buffer will obviously be within this stretch unless PLA is further in and beyond this which I doubt but who knows.
Everything east of blue line China already controls and India claims. Everything up to the pink dotted line, China claims. In between India wants to take obviously if it cannot take anything east of blue line.
Because India claims something, it doesn't make it their's otherwise Aksai Chin would be Indian. The same applies to China. If China doesn't control what it claims, it doesn't mean it's lost territory. Otherwise following that line of thought, India's lost 20 times as much territory.