China should pour $20 billion alone into Myanmar ($8 billion in the Kyaukpyu port, $8 billion in rail improvements, and $4 billion in oil/gas pipelines) and help broker an end to their civil war(with financial incentives, such as perhaps mining contracts to be transported on that rail network), and get a major naval base there. That will check india more than almost anything else. This would also help speed up economic activity in the underdeveloped provinces near Myanmar.
In the process of securing their SLOCs, the PLAN and PLA could big india down in counter patrols in the Indian Ocean basin, keeping them out of the pacific. China has already invested a lot in a large navy, so moving what for the PLAN is a modest number of a couple dozen ships (4 SSN, 4 Destroyers, A Type 076 carrier (large enough to carry a fixed wing AWACS and be able to detect and direct the destroyers to counter the IN’s Brahmos), a dozen frigates, and a few large PLAN marine transport ships; Type 075/071, and a few replenishment ships, and a hospital ship) would be a real challenge to the Indian navy. For the PLAN it would be good practice for operating against other navies. It would be a way for China to build up soft power in the Indian ocean basin and outcompete India for influence.
So China could make the investment and turn a profit while they are at it. India is right to be worried, India has set it self up as a challenger to China and China will be forced to contain them.