Red China is a real threat. Their sphere of inluence growing to include or encompass India in any major fashion adds to that threat IMHO. That's not manufactured, the Chinese are clearly trying to make it happen.
The Chinese threat is perceived as more imminent and direct to India for various reasons. Primarily the outstanding bilateral disputes between India and China have given rise to China-Pakistan axis against India. The regional adversaries not separately but jointly pose a threat to Indian peace and security. Subsequently, it is catalytic to prospective arms race between India and China too.
The collaboration between China and the military regime in Myanmar has put Indian strategic thinkers in dilemma. Especially the information about new Chinese Naval bases warrant the Chinese naval expansion into the Indian Ocean close to India's maritime boundaries. China already has demonstrated its belligerence in 1962.
China as viewed from the Indian perspective: INDIA NEEDS A GRAND STRATEGY TOWARDS CHINA