My 2 cents:
US is trying to goad China into a violent/kinetic response, in order to unite its allies and otherwise would-be neutral countries to contain China.
In my opinion, China should not be goaded. China will be depicted as the bad guy anyway in media, no matter how justified they are. Heck, even the U.S. went to war to stop separatism. I don’t think it is in the _best_ interests of China in the long run to give a kinetic response due to the Pelosi visit. The punitive measures imposed by the other countries would lead to high costs to the Chinese. That would be detrimental to the rejuvenation of China. China should win by other means. Look, China is set to have the world’s biggest economy within a decade, perhaps even faster due to access to cheaper energy compared to Europe and RoW. China will be the market with highest tech products. Just look at the electric vehicles. 5G. High speed rail. This kind of provocation from the U.S. shows how desperate they are to fight China earlier and also to deflect the US government’s poor performance.
The difference between the Korean war and now, is that the opportunity cost is much higher for the Chinese. Paradoxically, the higher income a person has, the higher opportunity cost. That’s why some high-earning persons have harder time to take more time off compared to a below average-earning guy.
As for the legimacy of CCP and Xi Jinping, I believe the Chinese trust the government and Xi Jinping enough, looking back at how China handled corona compared to other countries, the economic growth and technological and infrastructure upgrade of the last decades. Look how the US tried to humiliate China by fanning the HK 2019 riots. They wanted HK Police or the PLA Garrison to give the world a “Tiananmen incident” #2. Who won in the end by keeping it cool?
China should however, definitely do something that shows strong assertion of its sovereignty – for example an armed overflight of Taiwan. However, it should not fire the first shot/missile, which is exactly what the U.S. wants. China, should it ever come to an armed unification, optimally a peaceful unification, is the one who chooses the exact timing when she is ready.
China already is the bad guy. If it does nothing then it would just be a weak bad guy.