Is Zhou Li confused?
He's not confused, because a confused person would have blurted out the names of important figures.
So, is he really confused?
He is confused, because he has to be confused, he must be confused.
Going around in circles?
Yes, just going around in circles.
The King of Han wants to go around in circles because he has realized that Zhou Li has started to slip from his grasp, beginning to shed his status as a pawn. Therefore, the King of Han wants to draw Zhou Li in, weave him into his own camp, making Zhou Li one of his people.
And Zhou Li also needs to weave around; he knows he can't directly confront the King of Han, yet he's also aware he's not that weak. Whether it's Tang Wan representing the Tang Sect, the power behind Liu Gong, the deterrence of Zhuge Qing, or his own Night Unclaimed, Bad Elements, and Jinyiwei – the three Mechanisms in his hand, they are all his trump cards.
They are also factors that the King of Han fears.