This situation is sort of like the following disagreement between two playground groups - Party A and Party B.
Both parties want to gain total, unilateral access and control of 2 disputed basketball courts. Party A lives right next to the courts. Party B lives a block away but has otherwise equal right to claiming courts.
Party B on day two of disagreements offer Party A one out of the two courts. A refuses offer and prefers to get both. It thinks it lives closer and can monitor them with more members of its group in a more effective manner and so believes that B will relinquish eventually and ignore it seeing as B already has plenty of courts.
Years later, a fight occurs and B dominates both courts but in an effort to prevent the fight from escalating out of control, it moves back to pre-fight positions with the demonstration of military superiority done even when B was arguably at its weakest in its entire history. B thinks A may try re-engaging with all its members so to prevent escalation, this path was proven correct. A did not escalate once B moved back.
Now A is viewing B with some worry. B is many times wealthier and more capable than the past fight. B is also building up towards the courts in dispute. A decides to build up as well with members watching the courts and increased their occupation of the courts much to the displeasure and concern of B. B chooses to respond with a strongly acted statement and occupies both courts by force for a whole year. A tries to displace B's members by pushing them out with superior numbers. It didn't work. B still occupies. After 9 rounds of formal negotiations. A agrees to B's old offer with a difference. A can tell its members that their claims are still on and working but A agrees that it cannot use these courts any longer, it cannot allow its members on either court and in return, B's members will vacate it after a year of sitting on it.
This is just for Pangong. It appears China has not even disengaged in Depsang, Gogra, and Hot Springs yet despite many A members claiming nothing ever even happened there but A leaders and media saying the opposite.