@Faithlock
Xi Jinping’s strategy probably revolves around outlasting Trump.
Your assessment that China has not attacked seriously yet is correct, but it’s not necessarily a disadvantage. Every trench stormed leads to a loss of men. Trump has pissed off many important people in and outside US and caused his people suffering.
Xi has made a coordinated retreat, partitioning off damage from society at large, forcing US to pay an unsustainable price (literally, their govt can’t afford paying out promised bailouts) for every inch.
Beijing holds a couple of devastating moves in their hand, involving the mass sell off of US debt, seizure of US asset (particularly Trump family), export bans in electronics & processed materials and taking counter hostages using itself or Russia (last I checked, Ivanka and Jared both frequent China, and Putin has some sway over Trump family in general).
There’s two different theories of how they will come in play:
1. Not until China gets cornered. Every tactic would incur losses to Chinese society and international credibility just like use of similar tactics by the US. If the trade war can be won without using these tactics, then it would be an optimal victory that costs China little/no credibility.
2. When Trump’s personal position has reached a breaking point. Trump’s power has been waning since his inauguration. As of now, there is an ongoing mass arrest of Trump associates along with a shutdown which many people claim is a stalling act.
Once the US command structure collapses, Xi would attack while they are at their most vulnerable.
Is the current govt’s strategy optimal? Mao would certainly have done differently, but would that be better?
Xi’s stance comes from valuing the lives of his own people above the lives of non citizens, so doing whatever he can to make sure they are impacted as little as possible.
Mao on the other hand valued Chinese and foreigner civilians the same, that is to say, not much at all. What he valued was unity. He would be happy over the trade war because it would have united the people. Likewise, he would focus on attacking US unity while Xi Jinping focuses on attacking US livelihoods.