The US tried to stage a color revolution in China in 1989, this was before the dissolution of the USSR. US-China relations back then is comparable to US-India relations now.I don't think it's America plan. This contradict their grand strategy to contain china. Even if that's true, it's good for china.
I think china should rather force SAC to retract terrorist status and recognize MNDAA special region like how USWA got. This will also help SAC to consolidate elsewhere where they have chance to win.
The US will not allow a second China to form, that's why it is crucial for them to kneecap India early.