One should not look at the incident in isolation.
PLA started building up troops in the Galwan valley after 40 odd years and this happened. Coincidence? This is most likely a plan by CPC to distract its population and create support for the CPC amongst all the economic hardship.
The same is being experienced by countries from Taiwan, Vietnam to India. The only difference was that Indians responded unlike the smaller countries.
The deal on HK has been thrown out. In diplomatic circles you see the wolf warrior policy in play - from Canada to Australia. This is all part of the larger plan for China to dominate the region and show it's power.
CPC feels the time has come to take its position in the world and have things happen their way. The question to consider is whether they have calculated correctly or will the world respond if they upset enough countries.
That will define what the next few decades look like.