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in fact it was exact suggestion China raised in 1950s. If India had accepted it, there would have be no sino-India war in 1962 and the sino-india border disputes would have been solved long ago.I will be fine with India recognizing Aksai Chin as part of China in exchange for China recognizing Arunachal Pradesh as part of India.I know there a lot of "patriots" on this forum who want to get back Aksai Chin, but that is simply not going to happen and we should deal with it. No humans have ever lived in Aksai Chin.
These border disputes between India and China are a big headache. The sooner we solve them the better.
In fact, Burma accepted such a similar suggestion from China and China also acceptted the east section of McMahon-line as sino-Burma boundary.
However, at that time India rejected it and kept sending troops northward...so.we all know what happened later.
But now, CCP seems not to be satisfied with the suggestion raised by China in 1950 any more and wants Tawang back.