No, what China is doing now is okay. The most stupid thing China can do is to engage in a war at the moment , who is right or wrong doesn’t matter . China doesn’t control the media narrative(this is one aspect the party is completely incompetent on, even smaller powers have done better than them here), so they will easily be tarnished as the bad guy/aggressor. Plus the west will use this to pressure China even more and this could also lead to instability/disruption of China’s trade and thus growth. So the party is smart not to engage in any war at this crucial moment and sabotage her growth momentum and future prospect.
You have to understand that to run a country , you can’t be emotional unlike a normal civilian/individual, you have to consider so many things before even coming close to making any decisions , since your decision will affect the destiny of millions (or in Chinas case over a billion) of people. So you have to be very careful, patient, shrewd, compose and strategic , else it could doom your country and generations to come. Look at what Russia is going through due to an erroneous decision they made over a conflict in Ukraine .The effects of their war will last for decades on Russia and Ukraine . So emotions should be kept aside when it comes to geopolitical long term calculations. Chinese leaders have been doing very well in this aspect actually. I commend them for that as I have said several times .
The only part I will say the CCP hasn’t done enough yet, is in militarily to be honest. I think they can rearm even more than they have done so far, they should be spending far more on their military , don’t forget they have one of lowest GDP spending on military in the world at about 1.3 to 1.5% of GDP which is way below even the world average and among the lowest globally (even pacific Japan spends more ). I commend the party for focusing more her resources on economy, health, technology etc . However China doesn’t have the luxury of being in a non hostile environment , the country faces some of the most advanced and formidable militaries on earth, a hostile US/Japan at her doorsteps. So I believe as the American often say you need peace through strength. So far Chinas military isn’t overwhelming powerful to the point the US/Japan/West and others will avoid any confrontations at all price . Unlike with the Soviet Union who despite all her flaws in the economic realm had created a huge deterrent in such a way that even the most hawkish western analysts /official never dreamed of wanting to go to war with them and so both sides respected each other red lines in some ways and could even sign detente agreements and cooperation in some form. This is where I think the CCP hasn’t done as well as they are capable of .