The PLA incursion objective was to have the talks to return back to the before the Indian unilateral action, right? So the talks continuing is within the original intention of the PLA in the first place, whilst to the Indian side their territory has been transgressed and should be the ones defending their actions and declining the talks with a show force to expel the PLA from what Indian views as their territory.
So, on the one hand the PLA is achieving their original objective without giving ground, since the troops are still there on the ground and is in ‘Indian territory’ as it were and on the other hand the Indians whom has their territory transgressed have not achieved their objective of making the PLA withdraw, whilst at the same time havIng to discuss terms with the transgressor without any major action, is somehow the one with the upper hand?
I am sorry but I am not sure where the chickening out bit comes in when the talks was the point of the whole incursion.
If I am wrong in my understanding of the situation then please let me know.