Mao was not particularly concerned with Korea, too focused on consolidating Communist control in China and regaining control of Taiwan from the Nationalists. And when North Korea invaded the South China did not intervene, determined to take no action that would inflame the US.
Overall, China wanted to focus on its own geostrategic priorities, particularly involving the future of Taiwan.
But, when Truman ordered the US 7th fleet to defend Taiwan by positioning them between China and Taiwan, China’s involvement in the war began:
“On 5 January, Truman said in an announcement that the United States would not intervene in Taiwan. Now his conduct proves what he said was false.”