He certainly is playing a very dangerous game.
China however appears to be doing well indeed: they are slowing slicing away at two of our main supports, our allies and our access to resources, in particular oil. They apparently are having quite a bit of success at humint, and likely have a well-developed infiltration of Taiwan ready for major sabotage and other dirty work when the invasion begins.
That is why Bush and his crew bring fight right into the Chinese heartland, by adopting freedom offensive. Galvanizing Chinese people against their regime is more powerful than carrier battle group. If necessary, we should be able to fight ideological offensive as our adversaries(communists) used to do.