HongWu
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China's nuclear arsenal is quite enough to destroy all the major cities in both the United States and India. China has been a nuclear power since the 1960's. It has lots of time to build a huge arsenal of strategic nuclear weapons -- hundreds of strategic thermonuclear warheads.So long as China uses nuclear weapons on any country, be it India, Japan, Chinese Taipei or anybody, the United States would respond in kind. The Chinese arsenal is significantly smaller than the U.S.'s and if China gets caught up fighting a third country, the U.S. could easily take advantage of that and destroy it.
I doubt China would do it though. However that seems to be the opinion of every Chinese blogger on this site!
There is absolutely no way the US come to India's rescue after China engages in a nuclear war with India as long as China retains at least 200 nuclear missile still aimed at USA. China can use cheaper short range nuclear missiles against India like the DF-25 and CJ-10 and save the more expensive ICBM and SLBM for USA.
That's why China's best way of dealing with India is to change to a first strike policy against India, but no-first use against other countries.