He thinks you are his bed. He's trying to make his "nest" on you. Do you crate him? Does he do this at the same time every night? Then about half an hour before he does, make a little fun nightly ritual of putting him to bed in his crate. He'll make himself comfy in his own nest instead of digging on you.

Now, for the NO with you staring at him? B-A-D idea. I'm not going into dominance theory, because its too long of a discussion. Just mark my word, more trouble than good comes from dominance theory on puppies. Instead of NO, sternly tell him what is wrong. NO is too general. No bite! No dig! No bark! Tell him once. Don't ask him. Tell him.

Most of all.... get this guy into puppy class. You need some training yourself (we all do) and he needs socialization. I wish I had chis in my class. I NEVER have any. For some reason chi owners think their puppies don't need socialization, and within 9 months they have a little monster on their hands because the puppy knows the owner can be ignored... which sounds like he's already doing by ignoring your command NO which results in you doing the dominance stare while saying NO. They know if they are bad enough they'll get removed from the situation. instead of having to listen to you, they wait til you stop them because thats what they learn is status quo. They also need socialization because they think they are their parent's guardian... they need to learn how to fend for themselves in the big world without constantly being held and protecting you. I have yet to meet a chi in public that didn't fear me and give me a bite in response. I have siply learned to not say hello to a chi I don't know, and I am sad to admit that as I love to say hello to all dogs.