I agree about the tactic but the timing is way-off for that in my opinion. I think Xi is trying to lessen tension - stalling for time to try and figure out how to counter the tech freeze. Hence the plan to meet Blinken personally. Stirring up shit like this might be effective after the diplomatic visit but not before. I've read theories about CCP in-fighting and (anti-Xi faction) sabotage but here's an interesting and plausible alternative explanation - at least for me timestamp is 11:50 if it doesn't start in the right place. I'm increasingly convinced that the primary purpose of this was to just flex and start shit.
That's archetypal Chinese misdirection. If it's a success, Xi did it. If it's a failure, it's because a "regional governor" fucked up. COVID, bird flu, crypto bans, poison dog food, that shit goes back to Mao who copied it from Stalin, who learned it from Lenin, who learned it from Machiavelli. The balloon program is run off Hainan Island, which boasts a sub base that doesn't exist among other treasures.