Looks like a sure-fire plan to get a bunch of Coasties killed and a shooting war started,to me. USCG cutters are NOT warships and are NOT equipped to fight naval battles with actual combat ships,and if you insist on making them operate past their capabilities,sooner or later some Chinese warship IS going to open fire on them because they know they can sink the Coasties with no real threat to themselves.
This was clearly a decision made by some political appointee with no military experience or knowledge whatsoever.
The way you counter situations like this is by showing up carrying superior firepower from Minute One,NOT by tempting fate.
"Peace through superior firepower" may be an old slogan,but it is as true today as it ever was.