Ah, very true. I read something on this.

China does things like this whenever their people get out of line. They make an outside problem to make it seem worse for other people in the world, which in turn makes the Chinese people calm down their rioting and such.

It's such a ridiculous cycle.

I agree. The military show-off on both sides is to make as much wininngs (diplomatic, economic) as possible out of this conflict.

Wait, what? Every in the far east (except Japanese) hates Japan, because of what they did in WWII. America was allied with China in WWII. Also America is named 'pretty country' in Chinese, that must have some effect.

Oh, come on. China is trading with the world and it's economy is based on that. And yes, Japan is an important customer. So, even if China wins a war with Japan, it's economy would take a serious hit. Also going into war with Japan basically means going into war with the US. That will not happen. You are right, America is on a low point economically (lowest would mean it can't go lower in the future, and I'm not so sure about that). But militarily the US is dominating everyone in the world. China is in no way able to fight with the US-force.

The Philippines is the least of China's worries. It's only resisting China because the United States is backing it up, but on its worst day China can obliterate the PH Navy. With the laughable military power it has, they stil have to spare troops for the never ending civil war on the southern island.

Dn't know much about Macau, but in the case of Hongkong the contract with the British empire ended, which had put Hongkong under british control. And that contract was enforced by military might in the first place:

http://en.wikipedia.org/wiki/Convention_of_Peking

And China produces for the world. The west would suffer a serious economic crisis (but not as big as China).

K lemme switch that over to American products then. As they export a lot to U.S, American products are just that much more expensive in China.

And not every eastern country hates Japan anymore. I'm South Korean and I know plenty of grandparents who are still bitter about the Korea occupation and all, but we really only get heated in when we take them on in soccer, Japanese products and the like we're fine with that. American products on the other hand.....

Of course there was a lot of friction between Japan and other East-Asian countries historically, living close to each other will do that. 

If you look at it from a cultural and not a historical standpoint, stuff like Anime/manga is a lot easily accepted in China than american comics, as is Japanese food to American food. In the end, America is still much more distant to China than Japan is, If there ever was a PS vs Xbox war there, PS would win hands down. What matters in the end isn't history, that's all in the past. It's about a closeness in culture, and even though they might have had their conflicts, they have always repected one another's culture. Can't say the same for American influence on China, you won't see many American CSI shows there.

(Though I'm pretty sure Xbox if ever released in China won't get many M-rated games thanks to "promotion of violence" tag by the Chinese government, effectively killing off like 75% of the games it has.)

No question, a war involving China would be nasty. But America had decades to accumulate military power, China is far behind in that regard.

Good thing that China doesn't go so easily to war as the US does.

Oil.

Its about oil. South Asian sea are rich in oil reserves. No one wants the fucking island.
That said. Nothing will happen. Although concerns over hardwares can happen. War, not so much.
Sony and ninty will be interested. China has already stopped exports of rare metals to japan, thats why japan is contacting India for that.

China is all about boasting. They will never launch an assault on any country.