Fair enough point. Still would be personally disappointed if CCP withdraws from PP14/15 and Finger 4 because even in your own presentation of the motivations, the CCP is in every right to continue responding to India's aggression. The Indians have "retaliated" with trade war and solidarity against China. If your version of 1. India got aggressive 2. China responded 3. India ceases aggression 4. China ceases aggression and moves back 5. India creates a huge narrative of evil China and ban this and that etc don't buy from China, meanwhile we've seen no Chinese response to this. China is at a net loss, that's summed as three Indian provocations and 2 Chinese responses. And if withdrawal happened/happens, then China's got nothing to show for it while the end result of all this may be return to status quo with India's initial aggression checked, but India has ended up with unified determination to work against China and increase cooperation with the west.
I’m sorry, but that is a really pointless way to look at the situation, and is too petty and short sighted to appeal to Chinese leaders and strategists.
Rather than do simple score keeping, one should always keep the big picture in mind.
While India might be keen to penny pinch, and make any tiny territorial ‘gain’ it possibly can on the board, China really doesn’t care too much about snatching meaningless bits of land.
Part of that is strategic (China wants, above all else, peace and stability on its boarders, and making silly little land grabs would only trigger the Indians to keep coming back looking for trouble, which China doesn’t want); part of it is tactical (Chinese military advantage is so overwhelming that it doesn’t really care too much about small geographical advantages at the starting point. If a shooting war really breaks out, the PLA can take any and all Indian positions almost at will, so having ever so slightly better starting position really doesn’t mean anything to the PLA); and part of it is just practical. (See that sharp bend in the river? That is a flood risk area. The sharper a river bends, the more it is slowed at that point, and thus the more that area will flood if there is any increase in water volume. I really don’t think anyone will want to be in that area come spring when melt water starts to peak).
Chinese economic dominance over India is even more overwhelming than its military, so if China really wanted to retaliate against the silly India App bans, it has plenty of economic options without needing to apply military pressure.
As for reputational damage, well you are really overestimating the impact of the Indian press. They are too trash even for the western MSM to quote much, and all the China bashing really is only useful for internal consumption, and China really couldn’t care less about Indian hot air.