In its own interest China should start taking keen and active interest in the solution of Kashmir problem (ii)- China should try to avoid war between nuclear India and Pakistan over Kashmir.
China should shed its false-pretenses and rather should come down from high horse and sit with India to discuss in detail not only how Chinese interests of economic-corridor will be protected when ‘Pak Occupied Kashmir’ (POK) will inevitably be retrieved by India in very-near future but also how China will help India in retrieving POK, as explained at:-
http://www.pakistanchristianpost.com/detail.php?articleid=2756
China has to act fast as China must be aware that in three phase program declared by JuD Chief Hafiz Saeed (quite influential Jihadi in Pakistan due to some social service NGOs being run by him) the first phase from Lahore to Islamabad is already over. If in second phase Jihadis assemble at Pakistan side of LOC town Chakothi (via POK capital Muzaffarabad) then crucial phase in J&K history will start. If Jihadis decide to lay down the lives of another thousand or so (majority from Kashmiris of POK) or to court arrest of tens of thousands of Jihadis for Kashmir at the hands of security forces of India it will be game changer. Pakistani security forces may not stop these Jihadis who will be termed as freedom fighters by Pak government while marching from Chakothi to Srinagar (which will trigger immense support from Jihadis of Indian side of Kashmir) and then separation of Kashmir valley from India will look almost inevitable & imminent (under international pressure).
In case of any referendum the Kashmiri Muslims are most certainly likely to vote against India. Hindu majority India deluded itself for long by assuming that predominant majority of Kashmiri Muslims are with India because they have been participating in Local Body, Legislative Assembly and Parliament elections. In this regard India made two mistakes (i)- India did not understand that there is a difference between civilian matters (for which these elections are there) and martial matter of territory (accession of J&K to India) (ii)- If these Kashmiri Muslims are with India then where is the need to keep hundreds of thousands of security forces in J&K (for law & order enforcement) along with stringent laws like AFSPA etc.
Kashmiri separatists cannot get separation without the help of Pakistan (its Jihadis and government). But Pakistan may not insist on assimilation (through referendum) of Kashmir (even POK) in Pakistan. Rather like Bangladesh in 1971 the carving out of Kashmir (including POK) as an independent Muslim country from India will be acceptable to Islam / Pakistan. But unlike 1971 India will not be fooled this time and in order to avoid it India then will be left with no other alternative than to retrieve of POK. Therefore China – who has been trying to put many of its eggs in the basket of Pakistan without bothering (despite being permanent member of UN) to first solve gory & chronic Kashmir dispute between India and Pakistan - will have to act fast in order to protect its myriad interests in economic corridor through Pakistan.
Because time is running out as Pakistan (its Jihadis and government) have smelt blood for snatching entire Kashmir (including POK) from India in the changed scenario in Kashmir valley after killing of terrorist outfit Hizbul Mujahidin Commander Burhan Wani (whom Pakistani government has termed as martyr and has observed black day on July, 20 in support of agitating Kashmiri separatists and has allowed even UN designated terrorists like Hafiz Saeed to openly provide the leadership / control of said three point program / march from Lahore to Srinagar (via Islamabad and Muzaffarabad) for the so-called independence of Kashmir). It is context to mention that Pak PM Nawaz has publicly said on Friday that soon Kashmir will be part of Pakistan and Hafiz Saeed has publicly started inciting Pakistanis to be prepared for war if India does not give Kashmir to Pakistan.
Therefore not only in the interest of India and Pakistan but in its own interest China should start taking keen and active interest in the solution of Kashmir problem so that bloodbath (through Indo – Pak war) in nuclear India and Pakistan can be avoided.