China can definitely be a bigger market if the Chinese government stops banning games due to them being violent, as they form the large majority of current-gen console's library and will likely constitute the best games of this gen.

Interesting do Chinese people know PlayStation is Japanese, because China isn't willing to sell rare metals to Japan and of course there ate several boycotts. Though there is a difference  between buying and interest, has the PS4 launched or will it ever launch in China.

The hate of Japan is not as widespread as the media would like you to think. The Chinese enjoy a lot of japanese entertainment.

Sony has concrete plans to launch in China but no release date yet. I'm sure it will sell better than X1 there.

And China is already the biggest market for online and mobile gaming.

When you go to China, you can see Japanese companies advertising their products on TV and Billboards. All this anti-Japanese sentiments are from the hardliners which are in the minority (like in every other country around the world). So saying Japanese products will not do well in China is a myth. Everything else is a by product of politics.

Hard to say for sure. A lot depends on the government restrictions, they certainly have the population with the wealth t support a far far larger console base than Japan but a lot will depend on how much the government there allow. With no government interference it would pass Japan in just a year or two, but that scenario isn't going to happen.