On the contrary, China should maintain or further emphasize no first use, so the full potential of China's generational or even multi generational advantage in accuracy and range can be realized.Perhaps it's time for China to modify and update their policy regarding the deployment of China's nuclear arsenal, perhaps to put it simply, turning those policy from a purely defensive nature to a half-defensive, half-offensive-per-deterrence one.
I believe this is what Xi Jinping means when he mentioned "strengthening China's strategic deterrence capabilities" during the 20th CPC National Congress two weeks ago.
Those PLA bases in the South China Sea thus play a very important role in becoming an effective shield against attacks (by bombers and long-range missiles) from Australia and the Southern Pacific. Simultaneously, Diego Garcia in the Indian Ocean should be taken into the scope of southern frontier defense by China as well.
This is the reason why you see the US has been so invested in the South China Sea issue - They want to borrow ASEAN to get rid of China's southern shield, and thus, fully exposing China's Pearl River Delta in southern China to American aggression. That is, alongside the Yellow River Delta in eastern China, and the Bohai Rim in north(east)ern China, both of which are pretty much already naked in front of American aggression that passes through South Korea and Japan.
In fact, I think Beijing should really pour in more efforts into making the entire Southeast Asia into a fortified bastion against American and Australian aggression. South Asian and Central Asian countries should receive the same attention from Beijing as well for broadly similar reasons.
The US formulated several island chains in the Pacific and Indian Oceans since the 1950s in order to surround and contain China. Perhaps it's time for China to return the favor, firstly by doing so across immediate regions surrounding China first.
A single DF26 by virtue of its accuracy when it comes to hunting an aircraft carrier can do what would take multiple tactical nukes to saturate the area. All that while having 0 risk of causing an escalation to MAD.
When developed further, fractional orbital bombardment HGVs should be able to reach comparable levels of accuracy. Nuclear use will not even be needed to deter the American invader at home, instead US landmarks can be bombed with pinpoint accuracy and complete impunity, because the warheads used will not be nuclear and China is widely known to disavow nuclear use.
However I agree that China should reach out and put its defenses as far out as possible - build fortresses - such as the one already built around the straits to defend the coastline and Taiwan should US try something.
If US continues to cut relations or even signs war acts against China on Taiwan, China should meet its long neglected old friend Cuba again, and perhaps a new friend, Venezuela. Building a permanent PLA presence with DF26s in these 2 nations will remind America that whatever their next plan is, the world is watching. So be careful.