China should never consider preemptive nuclear use unless her enemies acquired conventional superiority that cannot be surpassed even using the whole economy and industry as base.War is almost inevitable at this point. I believe the US will deploy Hypersonic cruise missiles & HGVs in Okinawa too. China should be under no illusion now, go all in wrt nuke buildup, HCM, HGV stockpiles and even space based weapons regardless of the consequences. When the time is right do away publicly with the no first use policy (perhaps after reaching a nuke stockpile of around 1500) and also announce Pre-emptive use of Nuclear weapons if China's core interests are threatened. Of course all this will attract numerous sanctions against China but then it will be a double edged sword in that China can finally openly massively arm North Korea to the teeth with 21st century military technology alongwith providing some advanced capabilities to Iran and Cuba to needle the US. Possibly even arm Pakistan with HGVs and HCMs in the future to keep 82IQs busy and seething. If they want a war, China should give them their fucking war!
Even if it was going to do a first strike because the situation presented itself, it should arguably also not end no first use policy. They're the only country so far with ability to use HGV from orbit, using that they can first strike faster than anyone else. What will the survivors do? Take the CPC to court because they violated their own stated nuclear doctrine?
If it is necessary to glass a whole country of nazis to prevent their global victory, just do it on the low down, no point in bragging beforehand that we will send nukes.
As Japan boosts spending to 2%, China should do the same. It would not be a major strain on the economy and investing in the MIC isn't necessarily the money drain it appears to be. There will be many opportunities to offset cost through weapons export.