1. There is precedent for ramming and sinking fishing boats in disputed territory - your Japanese allies used that against both Chinese and Taiwanese boats.
http://en.wikipedia.org/wiki/2010_Senkaku_boat_collision_incident
http://www.chinapost.com.tw/taiwan/national/national-news/2008/06/11/160421/Taiwan-fishing.htm
By failing to condemn the Japanese actions, your silence legitimizes them.
2. I'm not mocking them. I am pointing it out so that they recognize their objective weakness. Also, it is to point out that science does not have to do with wealth or size - Kenya is both smaller than and far poorer than Vietnam, yet has comparable scientific output.
3. Mexico gave up because it recognized that Britain and the Soviet Union were not going to help take the 1/3 of its territories that got annexed back. China, on the other hand, has annexed precisely zero km of Vietnamese land, settled the land borders dispute completely diplomatically, and only has maritime disputes remaining. Because of these few remaining maritime disputes, Vietnamese are dreaming of building up an IRBM stockpile. And you are amazed when Chinese laugh at this sort of wild dream?
The provocations actually began with Vietnam. Just look at what Vietnamese are saying: "cutting off the SCS" "blocking straits of Malacca" "sinking merchant ships with Kilos". Who sounds like the provocative party here?
LOL ok, you have the most powerful ballistic missile arsenal on the planet.