I don't think the Chinese government is unduly worried by narratives and scary names, but is instead inclined to be ruthlessly pragmatic.
Diseases spread. Yes, in their early phases of spread, the total devastation isn't that high.
Your statements would hold just as true for the early phases of the 1918 pandemic-- lots of people die from flu every year; still fewer have died than happened last year; etc. They're statements that are true until they're not.
There's no guarantee of catastrophe, but the potential for it is there.