A war of China with US is out of question. US like to talk but will never enter war with China for japan just for a few small pieces of rock..
What US is going to do? Hit the hand that feed its mouth? Bash up its biggest supplier for its commodities? If a War started of US with China. China will sell off US bond, then it will nationalise all US asset in China. It will be a endless economic attribution that will tear down the whole world.
We can safely factor in a mini sea war with Japan without the participate of USN..
Beast am surprised you make these comments after living and perhaps studying in Australia,
Yes, US do not want war with China, but is not afraid to got war. this is not because of alliance and defense treaty alone, but also for its legitimacy and superpower status , its US alliance and defence treaty which has helped maintained peace in the region , imagine this , without US support , Japan would have gone nuclear a long time ago , so would South Korea and even Philippine perhaps.
China would have definitely attacked Taiwan, Taiwanese are no mainlander and wont sit helpless while the tank rolls like in Tiananmen square , even if you managed to defeat their defense force , there would be civilian uprising with China of epic proportion that would destabilize Chinese mainland.
War with Japan, will crush China, Japanese companies hire millions of Chinese worker, imagine millions of Chinese off work!!!!. Attack on Japan will invoke defense treaty ( direct - indirect) with US , EU , Australia , Canada , even if nobody sends troops; The 1st 2nd 3rd largest trading partners which are 3 massive economies and others (i.e more than 55% of worlds GDP) having trade embargo on Chinese goods. Along with two largest commodity trader (Australia and Canada) shutting imports to china.
The Chinese need to understand the west has done well without china in the past and wont do too bad without china.
As for China selling US bounds , and surprised Chinese make this comments all the time , if you know bit of finance and economy you wont be making those. When you sell something you would have to buy something , unless you plan to trash or burn it.
If Chinese floods the market with 2 trillion US dollar overnight, the dollar will weaken for a while ( which is heaven send for United states) but wont collapse, this is because when china sells; it would have bought something, what will it buy? Euro, Yen, Indian rupee perhaps, so these countries will in turn buy US dollar to weaken their appreciating (raising) currency.
In addition, US is printing 80 billion $ every month. i.e almost 1 trillion a year , they just have to stop the money press and buy the dollar .
Also when you flood the market with so much money, you are going to lower your return, imagine you lose 10 -20% of our investment i.e. 200-400 billion!!!! (this is being optimistic ). this will be the single worst economic transaction in history!.
So you see, China will never go to war with Japan/US.. Unless it want to rewind itself back to where it was 30-40 yrs ago as it will end up looser, without US firing a single shell.