Xi is a moron. He ordered confrontations with powerful neighbors, Japan, Taiwan, and India all at the same time. Now China finds itself under siege. AUKUS was formed and carrier battle groups from the UK and US now can be frequently spotted in South China Sea.
A flare-up with India can only add fuel to the fire when foreign firms in China are already feeling the pressure of energy shortage and rising labor cost, and above all the hostility created by China's conflicts with the West.