Yes, but she's probably too occupied at the moment to kick another honest's nest.

Also, HK can be a valve for the Chinese economy if the trade war continues to deteriorate.

The majority of the Chinese people have no idea what's happening in HK anyway, so it's not like HK will lead to troubles in other Chinese cities by itself, at least not in the short-term. So it is IMO wise for the Chinese government to leave HK alone for the time being.