BMD does work. Though we haven't used it in anger. Things have to be pretty darn bad for that.......
But so far of the 49 tests, 40 have been successful. Its not a be all end all at this point, but its getting there - for better or for worse (look up AEGIS BMD using the SM-2ER, SM-3 and SM-6 missiles) I was stationed in Hawaii when the X-Band BMD radar was there undergoing maintenance. Crazy bit of kit that!
Supposedly the threat of MAD deters the crazies.
Traditional ballistic missiles never achieve orbit and generally have pre-planned multiple targets for the MIRVs. A missile in LEO has much more freedom, as it isn't on a ballistic arc, but will still be constrained to targets along its orbital path, as the energy required to make even significant changes to the orbit is very high, and as we haven't figured out a way to significantly change orbit paths (not altitudes) we have to assume the Chinese haven't either, based on their current inventory of rockets and orbital vehicles
Here is preview of what Foreign Policy writes on this topic:
Over the weekend, the Financial Times reported that in August, China tested a new hypersonic weapons system that circled the globe. While the word “hypersonic” has gotten all the attention, what is more interesting is that the weapon entered orbit. This is no mere hypersonic system but what Cold Warriors called an “orbital bombardment system.” People are freaking out, with some calling it a “Sputnik moment.”
But just what is this thing, and how bad is it? Well, it’s an FOBS—a fractional orbital bombardment system. It’s not new. The Soviet Union deployed a similar system during the Cold War. But China’s test of such a system is unwelcome news, not because it’s some fantastic futuristic technology but because it is yet another step in a pointless, costly, and dangerous arms race.