You don't need to know exactly where the receiver is located. In 3D all that is known is the azimuthal and polar angle to the source, and the magnitude of the signal from the source.
A satellite and an aircraft could have the same azimuthal and polar angle from a given point on the ground, as long as it's not directly overhead. Given that multiple GPS satellites are required for triangulation in 3D, it is likely that not all of them will be directly overhead and in fact may be on the horizon where a distant aircraft would be.
A jammer on the aircraft can emit a signal of equal frequency and equal or greater magnitude as that would be received from the satellite.
a signal of same frequency, magnitude, polarization, azimuthal angle and polar angle is indistinguishable from another signal with these characteristics.
Yes, in your scenario, the aircraft is in the line of sight between the satellite and the receiver
But that is not going to happen, because you have 3 elements moving very fast, namely:
1. Multiple satellites overhead
2. Being able to keep an aircraft exactly between a satellite and the receiver below
3. Multiple GPS receivers below
It's just not feasible, even for just 1 satellite and 1 GPS receiver
Then consider the huge number of line-of-sights between [overhead satellites x GPS receivers below]
Plus in the case of China, it's easy to program in that only GPS satellites (and other GPS transmitters) in the direction of mainland China are valid.