Some theoriest might view it that way. I might think it meant they know they don't have enough nukes to take down our whole military complex. They will however be willing to destroy several of our largest cities if push comes to shove. Don't push them too far... if we don't stand in their way... especially if we continue to send them billions of dollars every month.
Given enough time, money, and secrets, do they plan to point those death machines somewhere else? Do they plan limit themselves to the current # of missiles? Will they truely be part of the civilized world, when the're big enough to play the big game? Are they my friends, are they good for me and my children, are they your friends?
I see what you're saying, theoritically, but who does win if they launch?
As for the future: their nuclear forces are slated for a modernization, but a modern ICBM costs far more for them than it costs us (in terms of total national wealth). So any force expansion is going to be fairly slow. And they have a LOT of structural problems that are going to catch up with them sooner rather than later.
I don't see China being a player on the international stage as either the next big baddie OR a "civilized nation." Instead, they're going to fall into yet ANOTHER round of warlordism and banidtry before 2020. Heck, the US Navy may reactivate the Yangtze River Station before 2030.