I was walking my 7 month old Suzi yesterday evening and There was A tny Chi puppy in A neighbors driveway. This puppy did not even look like it was 2 lbs. SHe was so cute. The puppy went running over to us and Suzi was so scared

She kept running away trying to get as far away as she could. The tiny puppy wanted to play but, Suzi was terrified. I finally had to pick her up. it was a bit embarrasing to see my 7 lb Yorkie freaked out at A itty bitty baby .
Suzi has been around other dogs before, and behaves the same way. Sheis terrified. But, to see her act like that with A puppy that little makes me think I am doing something wrong.
Suzi loves people, and always is overly friendly with everyone. How can I get her to like other dogs?