Chinese are notoriously known for their 2-turn. In 1962 something similar happened (disengagement), only for them to attack back in Nov.
Bold, LOL they don't need India at all. While its good to not have India as an "active" enemy, and be able to sell shit to Indian market, they don't really have any dependency on us.
I will argue China is far more dangerous than USA. All the countries USA has influenced (not colonialised forcefully through military, eg., Iraq) have turned out to economically better-off and turned into some kind of cultural or economic powerhouse, or both.
All the countries China has influenced has gone to dogs. Literally. Economy crashed, militarily and domestically handicapped in multiple ways, became complete banana republics.
Also, for our context -
What USA wants - Remove far-right govt, install USA-friendly govt, sell us surplus military hardware, ready to grow our MIL by shifting their supply lines to India, and have military bases in Indian subcontinent.
What China wants - Remove far-right govt, install China-friendly govt, cripple us with economic dependency on them (kill domestic industry), start & increase multiple seperatist movements inside India to break us into multiple pieces like Myanmar, grab our territories and finally kill the republic of India.
Choose the lesser evil.
PLA ain't going back. They will just start patrolling.