Chinese government seems to have released a map of what it thinks is the territory...
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Here is what I got from Google Maps
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The marker is for Shen Jui La. Which Google shows in Bhutan. From these maps it appears to me that China is trying to occupy Shen Jui La and Donglang plateau from Bhutan. India forces are actually in Bhutan right now defending those parts and thats where the stand off is.
Here is the google earth/ sat images of the region
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You can see why the heck they are trying to occupy these portions. This portion is highlands looking over the lowlands which is Indian 'Chicken neck' to seven sisters states. We now know that it is China which is playing the role of regional invader here. The land it is trying to grab belongs to Bhutan. Obviously, India will intervene here. It affects its own safety and that of a country which it is its closest ally in the region -- Bhutan.
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More goodies...
Here is open street map for the same place
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Notice this map also does not support chinese claims.