IMO having 100-200 tactical warheads for final warning and anti-brinkmanship use makes sense. Because with the USA, you never know. They might use a few warheads in a critical moment in a war and then use brinkmanship. Fully in character...A small correction, there was no thermonuclear back when Operation Crossroad was there.
The most interesting revelation from this essay is the confirmation of possible nuclear use on anti-ship warfighting. It was thought to be countervalue only in Chinese nuclear doctrine, but now the researchers (who is also warhead designer) is actively doing research on nuclear effect of warfighting use.
It opens door for potential nuclear anti-ship/counterforce HGV/DF-26 class IRBM.
If China is after a large tactical arsenal, I would call that a mistake though.