From all thats going on at LoC and LAC, it seems to me that all the earlier "restraint" by previous governments was to prevent this showdown but keep taking small hits.
The change in strategy by the current leadership is not palatable to either the opponents internally or to external adversaries.
Thanks to other learned members on this forum, my understanding is that, for the external adversaries to escalate, they must commit fully. Which is all out war. There is no way that they can do some posturing and get us to back off. This is a serious loss of leverage for them as we used to be accommodative earlier.
The other impact for China would be on SCS and OROB+CPEC. China has not been fair with India wrt NSG, Hafiz case and more importantly ignoring our objections to CPEC. That in itself was enough for us to say not to China on OROB. The current situation makes it a bad case of China in any case. If they commit more resources for war with India and lose the economic gains. If they back off, they lose their leverage with India and other nations. Their OROB (along with China next pole narrative) is in threat unless they get out of this tactfully without escalating.
Internally too, any Chinese action will make Modi stronger. This is not something the opposition parties would like.
So,in all probability, China will back off. But what scares me is that they may increase their investments in anti-India groups within and that is not good for us.