China is not being directed by a central strategy that ruthlessly pursues dominance.
The common perception that China’s centralized state leadership is empowered to pursue Chinese dominance over international affairs is tempting, but illusory. Its actions abroad are better understood as a manifestation of the Chinese leadership’s responses to various, and occasionally conflicting, domestic political, economic, and social pressures. For example, President Xi Jinping’s signature Belt and Road Initiative, enshrined in the Chinese Communist Party’s Constitution in 2017, signals China’s intent to be a major power, but the initiative is less coherent and centralized than it appears. Xi’s launch of his vision for the Belt and Road in 2013 is more accurately described as the rebranding of a host of disparate and pre-existing projects than the launch of a new strategic initiative.[3] Assuming China’s foreign policy is fundamentally driven by a grand strategy to engage and win great power competition may lead to ineffective responses from the United States and other international competitors.
Part of this common perception of China's relentless drive for power is the notion that the Chinese leaders think so far ahead of the Western democracies that we are at a grave disadvantage.
China is a threat because of their increased economic and military power plus their location near important American allies.
But don't make the Chinese rulers to be a Yoda-class of people with unlimited wisdom, prescience, and focus.