I think this is best workaround/outcome for both parties. With protesters not backing down, Beijing can now declare Lam has gone rogue and save its face. Cracking down on protesters definitely was not working. With international media presence they cannot crack down on protesters Tiananmen square style.
There is a difference in kind. If China does anything, people all over Africa will see it happening in real time, for example. That is scary to the Chinese who have too much investment at stake there to see an additional revolt to their authority.
