In the midst of all the hysterical China bashing, everyone seems to have forgotten one relevant fact. China in all its 5000+ year history has never been expansionist. In fact usually the opposite, turning inwards periodically, as many Americans think the US should do. (The only exception to this is Tibet, a tragedy that bears little relevance to this bunfight.)
Conversely, the Chinese are extremely wary of foreigners coming to their shores. The last time this happened British (and American) companies came to sell opium despite the protests of the Chinese government. These paragons of international trade were accompanied by an Army that proceeded to occupy Beijing and burn the imperial summer palace, a 2000 year old structure and its reportedly exquisite gardens. All in the name of Free Trade.
Can you blame the Chinese for being paranoid?
For the record I am not Chinese or Communist. Merely a despairing parent who wonders what sort of world his children will live in.