Im somewhat surprised to hear the slobbering coming from the Indians. Afterall, what the ambassador said is merely is a reiteration of official PRC policy for the last 5 decades regarding Arunachal. It was neither new nor provocative.
Then again, perhaps I shouldn't be.
I wonder what the people in Arunachal actually think. The majority of people in Arunachal are ethnic Tibetan and Thai-Burmese (so Mongoloid-looking). Northeast India is separated from the rest of India by Bangladesh.
I think the Indian reaction is especially strong given the Chinese president's pending visit to India.
I have a feeling some kind of a compromise will come soon. The Chinese are definitely pressing the issue on the Indians. The Chinese ambassador's statement, though stating nothing new, was worded in a very definitive way. Recently the Chinese Academy of Social Sciences (a major Chinese policy thinktank) has also been calling for the return of Arunachal's Tawang to Tibet.
Any compromise leading to loss of territory for the Indians would probably not be acceptable for most Indians. Most Chinese though probably don't know where Arunachal even is on the map.