Unfortunately, the dysfunction in India is likely to continue. The masses left destitute will remain in their relatively stagnant conditions and the tangled bureaucracy will be unlikely to be streamlined. As a result, India attempting to instigate further in order to deflect from their domestic strife is all but guaranteed. This presents quite a unique challenge in that China needs to find a sweet spot in terms of the magnitude of short term responses.
While economic engagement is beneficial to both parties, the entire ordeal has shown that the dysfunction in India is so severe, their bureaucracy so uncoordinated and their media so corrupt that it has rendered them completely untrustworthy. India has almost all the ingredients for success, yet as time goes on it becomes exceeding clear that India has only amounted to a mass of wasted potential. Whenever the reality of failure collides with their delusion of grandeur, a distraction is necessary lest the contradictions causes the very idea of their nationhood to crumble. The tough question is how should China calibrate future responses to Indian transgressions while accounting for the Eastern Front?
India's transgressions offer a headache but since it seems they are unable to rectify their own problems, they currently occupy the space between nuisance and prospective competitor. Any future responses must be conducive to creating a permanent solution where India, or its potential partitioned constituents are no longer able to mount any incursions. Any solution must be militarily calibrated as it is abundantly clear that India's state apparatus is so chaotic that a diplomatic solution (even if political will is secured) is absolutely unfeasible. Only in the unlikely event that India fixes their entire state apparatus could a permanent diplomatic solution even be considered.
