think its simplistic....
1. Arunachal Pradesh is "South Tibet" extension of the Nyingchi and Shannan prefectures. And its IMPORTANT to annex AP to complete annexation of Tibet into China.
2. Aksai Chin is not as important now with alternative modern communication systems available to Xinxiang province. Maybe we can keep it..maybe...we will return it to India
3. Keep aggressive posturing along the border to impress upon India that we want AP in China.
4. Keep talking to India with a big stick(read nuclear). I suspect the Chinese firmly believe India is weak(They have a reason from 1962). Any sign of India bolstering itself be it the recent nuclear deal with US(though a useless one) makes the Chinese go nuts.
As to how to respond go figure..
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