Picking on the Phillipines and other small nations like that is one thing, trying to bully Japan is not going to go over well, and any regional instability built there will only add to that created in the smaller nations and China could soon find itself surrounded by angry neighbors.
Well, like I said, only if a sane person was in charge of our foreign policy, as it is the Chi-Com's feel justifiably free to pick on all these nations.