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LAC HAS become LOC long back. Do you really think that the PLA will go back? Go back where? They don't have troops stationed on the Myanmar, Laos & Vietnam borders except for some low-level border guards who rely on China's diplomatic and economic dominance. Vietnam is still a bit more equipped but Laos and Myanmar are virtually Chinese satellite states ruled by border police factions, conscripts, and local commanders who take a cut of money from the local cross-border trade.Actually, if IA is cool headed, we wont poke chinese any more. Politicians wont undertake symbolic moves against china (like bycotting beijing olympics). Sad IK.
If we want POK, best keep troop levels on LAC low. If LAC becomes LOC, chinese will be incentivised to join in. If it goes back to normal, they will have to ferry over men and material before doing anything- not in the 10-14 days our military plans for a war with pak.
The best of China's everything including rockets, artillery, missiles, air defense, etc. is centered around their eastern flank where their economic pride is. They will never move their troops away from northern, central, and southern commands that face Japan, Korea, and Taiwan. Not because they are stupid but because commies are a paranoid lot.
This is notwithstanding the fact that their internal security needs are almost the same size as external ones, unlike us where our HMO spends a fraction of what MoD spends. When talking about wars, we are not factoring in their internal troubles. China is not a society that is used to upheavals like we are. For us, everything is just "yeah a controversy". A dozen such controversies in Chinese society and their regime will teeter to the brink unless they suppress the said information.
If they are flaring up the way they talk, then there is definitely a lot of problems somewhere inside. Remember that with the Communists.