Chinese planners and strategists are anything but naive. I seriously doubt any of them hold any illusions that niceties like goodwill would be appreciated or even recognised by the Jai Hind lot in power in Indian right now.
As such, if China is disengaging, it would be for practical reasons, and certainly not because of any fear of Indian capabilities.
I would say keep a careful watch of the east, and Taiwan especially.
If Biden carries on with the set-everything-on-fire-on-the-way-out-the-door poison pill policies the last gasp days and hours of Trump and Fat Pomp’s reign, or even looks to be cementing the new Cold War that went into overdrive under Trump, then I serious worry China will simply decide that enough is enough and retake Taiwan.
Taiwan has always been a dagger pressed to China’s throat. An ace in the hole that the US can play at any time, whereby a quiet promise behind closed doors to Taiwan will see China and America directly at war with China easily cast as the aggressor.
In the past, because of economic co-dependency and responsible adults being in charge in the US, this was largely an academic threat, since the costs of starting such a war would be so ruinous to America and American elites that China can bank on there being no appetite in Washington to actively play that card.
With Trump having stripped away much of the economic linkages throw his stupid trade and tech wars; with a growing consensus in American elite circles on both the need for a Cold War style direct and overtly confrontational relationship with China, and that rapidly ticking clock on the window America has left to fight such a war while it still might have the upper hand militarily; it is possible, likely even, that Chinese strategists have concluded that odds are now unacceptably high that America would look to finally play its Taiwan card after they have recovered from Covid.
There are certainly more than one warning sign that America is already starting to make moves in preparation for such a war, what with its fake genocide publicity drive; Covid lies and mobilising their 5th column forces within European nations to actively damage their relations with China while strengthening ties with Washington etc.
As such, as the saying goes, if you are going to hit a deer, you better speed up. China may have concluded that the best chance to avoid a direct shooting war with the US in the near future is paradoxically to restart its frozen civil war with Taiwan and finish that once and for all and remove that low hanging fruit from American chicken-hawks so that if they really want a war with China, they will have to explicitly push for it instead of trying to backdoor one through Taiwan.
With American still deep in its Covid crisis, and deeply dependent on China for critical medical and commercial supplies; a brand new administration only just in power still finding its feet; a deeply internally divided America; and Europe both preoccupied with their own Covid crisis as well as being still deeply suspicious of American intentions, it is actually probably the best chance China has ever had to take Taiwan by force without having to directly fight American forces (and maybe American allied forces as well!) in the process.