China bluffing again. They have nowhere near the launch capacity to do something like that. Look at how many Falcon 9 launches have been required to launch, and then constantly replace Starlink satellites (because they only stay in those low orbits so long), and China has nothing remotely approaching the capability of SpaceX. And even SpaceX needs an unprecedented monster like Starship to fully realize the Starlink vision, and I guarantee China isn’t remotely close to doing something like that.
SpaceX launches somewhere over 80% of tonnage into orbit and are widening their lead. Sheer bluff by the Chinese.