I am sorry but this has to be one of the most ridiculous comments. Wars are never the answer. The defence capabilities should be as it says "Defence". China or any other country in the right frame of mind cannot risk geo political issues that will arise as a result of this as you put it "small scale war".You guys realize that Indians still think they 'won' the Balakot episode right? That was exactly 2 years ago. And they're still not convinced they lost anything, when literally the entire planet laughed at their claims, even their own allies.
If you wanna fix this problem, it's not gonna happen through rational debate. This is gonna require a war, which is what China is preparing for now, along with Pakistan. The CPC understood this on August 5th, 2019, when India revoked Article 370, as Sawhney has said repeatedly, trying to warn India's leadership which is not paying attention.
This can't be a long war. It will need to be a 48-72 hour high intensity conflict. The two key objectives are Kashmir and crippling India's military. Both objectives will need to be met in this time window, before the international outcry over 3 nuclear countries going to war becomes overwhelming and a ceasefire is called. It's not a trivial matter. Even when an enemy is as incompetent as India, it takes a lot of planning and preparation to pull off an offensive against an entrenched enemy, especially one as big as India. It will take time to prepare for this. Years, maybe even a decade, before all the pieces are in place. So don't get frustrated, just wait. Grab some popcorn.
The economic issues on hand a far greater than getting involved in pointless wars which will not garner anything for any country. In long run the future wars will be fought on economic and information battle grounds. China is indeed fortifying its position on that front and will be doing that for years to come. A conventional war even at a limited scale will not favour China and if Pakistan gets involved that would be stupidity of an epic scale.
Sorry to be blunt but some of your comments on this forum just dont make any sense.