Diplomacy is an odd business... China sent a questionable item to Pakistan — an industrial autoclave that can (possibly) be used for refining uranium — and India seized it under non-proliferation pacts, that's simple enough. But there are a lot of subtleties underneath this event that are hard to parse.
- China claims it's not a 'dual use' autoclave that can be adapted to military applications, but likely doesn't want to raise a stink about it. Raising a stink would invite the international community to look closely at the transfer, which might prove embarrassing to the Chinese government if they were trying to pull a fast one.
- India may have seized the device more because it was an opportunity to embarrass the Chinese (whom they have consistent border disputes with), than because it could actually be adopted to military use. Appearances matter more than facts, sometimes, and making a stink about an objectively harmless act can often be effective.
In any case, this is unlikely to be something that the Chinese would retaliate over. The autoclave is still technically Chinese property, and will probably be returned to the company that shipped it after the incident has been milked for any political and diplomatic advantage. Or if it actually is 'dual use' it might be destroyed as contraband, but the Chinese won't object too strongly because they'll want it to appear as an honest mistake. Diplomacy is a long game, and good players don't get their nose out of joint if they lose a hand.