My freind true that china has got a big nuke aresenal but it also knows that India to has a nuke arsenal....true we wont be able to stand a chinese agression but what chinese fear is that even if India fires two nuke bombs on china that after effects of it would be very grave to go for a war. Thats what India fears for war with Pakistan.
The issue has to be dealt tactically.....hit where it hurts most and for anyone giving a economic blow is most painful. Just stop all chinese goods flowing into India...throw out all chinese companies operating in India and the economics will make chinese agree to Indian demands. Just like what NDA did with Pakistan, didnt went to war but moved army to border and pakistan had to do the same which made them bleed through their nose.