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Yes it could lead to world war and this is the last thing the world will require it. Because anyways due to this pandemic the world has already gone few years behind now and millions of people have lost their jobs and difficulty to survive in this world. China hopefully can change their decisions and sort it out quickly.
This is a power struggle created by China as they have funded Nepal to be on their side as well as Pakistan, usually Nepal was an ally of India but things are changing now as money always rules in these matter and it will not lead to a war simply because India has the support of USA and their allies and Russia is still a neutral party during this struggle which is weird as Russia is a major player in these region.
Now China creating border issues with Russia as well so we can expect Russia to go against China in the near if China keep doing the same things.
Tiktok is now trying to bring back their app in India because they mentioned they lost 200 million users due to this ban which results in 45,000 crores loss for the company.