IND151
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Mao was not stupid or a moron. The way events unfolded, he had no choice. PLA had over reached, their supply lines had collapsed, and the US was getting ready to intervene. A carrier group was already being diverted close to India (6th fleet)
After a bad taste in the mouth from Korea, the US was in no mood to deal with any more Chinese adventurism. They actually increased military aid to India, irritating Pakistan. There are volumes written on the subject. I can provide more links if you wish.
But here is a start:
A Forgotten War In The Himalayas
not surprising, if we see the US policy "No nation should become too Powerful"