With Nepal firmly in its kitty now, China is taking all steps to ensure it's proxy acts as per it's wishes.
Indian's are generally known for short term thinking. I rank Nepal going to Maoists as India's biggest foreign policy failure in last two decades. It surpasses stupidity of the highest order even when compared to Nehru and Kashmir, Nehru and China, Rajiv Gandhi and LTTE.
If we had long term thinkers and really dedicated nationalist leadership, India could have Nepal to it's advantage rather than see it slip into the RED corridor. In less than a decade Nepal will be our problem rather than a buffer. It will join the ranks of Pakistan, B'desh, Sri Lanka as our "naughty" neighbor. And China will use these levers to brow beat India when it wants to.