Don't you think China has already achieved its objective? Lets take a simple example -
You and your neighbour (say your adjacent building) and regularly fight on which part of the land belongs to you and which part belongs to your neighbour as you want to construct a wall in between. (Yeah stupid example, but this will have to do).
Now one fine morning, you take the initiative and construct a wall on their land (you know it's their land) wait.
Now, it's up to your neighbour to break that wall if they are not OK with it. If your neighbour doesn't break that wall, don't you think that you have achieved what you wanted?
Is there any further action required on your part?
Now, think about the situation at the LAC - India and China didn't have a well marked border. There was a stretch of land which both countries had access to and used to act as the buffer zone - to avoid conflicts. Now, China has occupied that land, so it is no longer accessible to India.
Isn't it up to us to dislodge them? If we don't/can't evict them, they have already got what they wanted, why would they wan't to fight us and inflict casualty on their own troops?
On the other hand, China needs to keep India busy in the long run - hence arming Pakistan to the teeth.
We will see increased hostility from Pakistan army in the LOC area. As per
@vstol Jockey we have wiped out two of their brigs in last two weeks - question is, does that deter them, even, does't that make any difference to them? They are cannon fodder, they know it. They will do what they are told by their Chinese masters. India needs to take decisive action against Pakistan or else, like always, we will analyse the sh*t out of another f*ckup of our administration and military in this forum, in the coming years and things will go on exactly how China wants to.