HMS Amethyst and the political choice to contain a naval incident

Why did the attack on HMS Amethyst avoid producing a war between Britain and communist China?

Both sides are described as containing the incident because they had other problems and wanted to avoid escalation. Amethyst's eventual escape mattered, while the later clarification acknowledges serious damage and casualties.

Both sides had reasons to contain the Amethyst crisis politically. Amethyst is identified as a Modified Black Swan-class sloop. One explanation centres on Chinese officers acting beyond their remit and Britain's other problems, including Hong Kong. The initial description of Amethyst as undamaged is corrected later: the ship was damaged, grounded and suffered casualties. Hits to the bridge and low-power room affected control and firing circuits, while the stern turret was disabled after returning fire. Alex also recalls HMS London and Black Swan moving upriver and being bombarded without returning fire. Her eventual escape gave the governments room to manage the dispute. A sinking is judged likely to have created stronger public pressure for a British response. The wider argument is that a smaller warship on a diplomatic mission can leave more room to contain an incident, even when damage and casualties are serious.