Yes, they do.
They know exactly what they're doing.
They're going to keep pushing, increasing the heat on the frogs in the kettle bit by bit, and then act surprised when they get "unprovoked" pushback.
Same with Ukraine. They knew where the red lines were, but they thought if they could overthrow the government and get "our guy" in place, they could steal the "Soviet" naval base on Crimea from Russia.
Thing is, this is an election year, and both candidates need to out-anti-CCP the other. Any move by China to counter the threat, and it IS a threat, will require a counter-counter-move to satisfy the domestic audience.
Buckle up!