China should avoid getting directly (i.e. militarily) involved in the current confrontation and escalation between India and Pakistan as best as possible. Diplomatic channel must be kept open with both Islamabad and New Delhi, and Beijing must be steadfast in offering off-ramps for both countries to disengage and come to a ceasefire.
In the meantime, the PLA should offer as much and as best of military intelligence collected from the Chinese side of the border to Pakistan as possible, by flying AEW&C, ELINT and SIGINT aircrafts and drones in the regions per one of my prior posts. Secure military equipment and platform supply routes should be established as well.
Simultaneously, the PLA Western Theater Command (WTC) should go on high alert and be ready do go into action in case things goes out of hand (such as some Jai Hind generals hatching some funny ideas and decided to attack the aforementioned supply lines inside Chinese-held territory).
Another avenue to help Pakistan would be conducting large-scale, cross-service and cross-domain maneuvers and exercises in the WTC region, in order to not just split Indian military's attention, but also making sure that all the PLA troops stationed at WTC are prepared and on standby.
The PLAN's South Sea Fleet should also be on standby and ready to move out and into the Indian Ocean, in case the Jai Hinds hatch any funny ideas about the oil-and-gas sea lanes between West Asia and China. Also, it's time to send out reconaissance ships to loiter outside the coasts of western India and Pakistan too.