China shouldn't react to American provocations by trying to outdo the Americans. Instead China should take the opportunity to initiate actions that further its strategic goals. As Mao was saying, "you'll fight your battle, I'll fight mine". Be proactive, not reactive. Pelosi's visit is a major provocation that will create a rally 'round the flag effects on the Chinese populace to benefits of Chinese government. If China tries to outdo Pelosi by, say, intercepting her flight, that will create a rally 'round the flag effects for Pelosi and even Biden. That's her plan. Don't let her succeed. China should take advantage of the rally 'round the flag effects in China while deny the same benefits to Pelosi and Biden.
For example, Xi could take the opportunity to consolidate support for higher military spending. Hu Xijin and Jin Canrong had already called for increased military spending. In doing that, they really did break the rank. It's long been taboo to openly call for increased military spending, and vested interests are against such increases (e.g. what I call China's Infrastructure-Industrial Complex, made of private and state-owned companies and government officials on all levels). This would be a perfect opportunity to gather political and public support for substantially increase the military budget. What's going to happen to Pelosi politically in U.S. if her trip only results in photo ops for herself and Xi Jinping consolidating power at the expense of Chinese doves?