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If China believes that Arunachal is illegally occupied by India, then that is surely a reason to go to war, unless China feels too weak / cowardly.
I think the reason China doesn't go to war is because it is weak/cowardly, and would loose very badly, and that would be the end for the CPC. Imagine, after winning 2 trillion Olympic gold mdeals and with FX reserves of 5 gazillion, the PLA loses a war to a bunch of Indians (with fighter pilots from Arunachal Pradesh, and the odd Tibetan here 'n there) with 30y old artillery ...
The current Indian government is so strong that it is even drilling for oil in waters claimed by China i.e. the South China Sea. On the other hand the Chinese Government is weak and has to swallow the insult.
So my Indian brother, hold your head high and don't fear the Chinese. The worst they can do to you is sell you very badly manufactured children's toys.
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