Yes its absolutely ridiculous. How could China trust India to a gentlemen's agreement after everything that's happened in 2019 and 2020?I think the assumption that China will withdraw from Finger 4 is ridiculous. THey spent months building all the infrastructure and fortifications and will they take time blowing them up/dismantling them or are they just gonna leave it for the Indian Army?
What guarantees are there that Indian troops would not occupy the disputed areas once the PLA had retreated? None, because this BJP India has a horrible track record of backstabbing, opportunism, and no respect to agreements.
The next step for China should be to build a DMZ. With fences, barb wires, and mines. Covered by sentry drones and UAVs. India could send terrorists over at some point. Just like their BRAS experiment with Pakistan.