The very definition of a pyrrhic victory which is utterly meaningless and worthless. The Chinese are not interested in such empty symbolic victory at the cost of literally everything.
It has value because if you put yourself in the role of the strongest country in the world, that has unmatched ability at progressing new weapons and putting them in mass production, why would you not use your abundant resources/industry hedge your bets so you can stay on top in any future?
That is why as far back as China had nukes, China had also begun working on nuclear defenses.
As such, I think the extent of Chinese nuclear expansion is aimed to achieve nuclear parity or even a slight advantage, to firmly erase all possible delusions the Americans might hold about somehow being able ‘win’ a nuclear war against China to prevent one from ever happening.
The only purposes of nuclear defenses are not for parity but for winning. I think the only correct choice in dealing with America is to keep preaching denuclearization verbally, while with actions enhancing the full second strike against a tactical first strike option, or the treaty breaking first strike option.
But there is no real value in seeking to have a dominating nuclear advantage because once a certain minimum threshold is passed, more nukes is just meaningless overkill and a waste of resources.
This is also why I think China will continue to build big megaton yield city busters instead of going heavily into low yield tactical stuff, expect where miniaturisation demands it for MIRV purposes and/or for mounting on hypersonics.
Tactical nukes are used by weak countries that don't have confidence in conventional capability. 50 accurate conventional missiles carry less than 0 risk of escalation and can match the destructive power of 1 tactical nuke. If you can comfortably out pace in conventional weapons, tactical nukes only end up griefing yourself because you give the other party an excuse to escalate to strategical nukes.