Chillax!!! You must have been playing a little too much of war games lately.

You know how to play poker, don't ya? After the PCA case, China has lost its upper-hands to ASEAN. So what China's trying to do next is to raise the ante on the smaller countries (of course some of them will fold their hands, such as: VIETNAM, CAMBODIA, THAILAND, and whatnot). That is the essential move before China calling for one-on-one negotiation with each of those countries.

With that move, China will establish one important thing. That is there will be less countries ganging up on China. That'd also leave China to have more chance to stand up with the U.S..

So the bottom line is China will try to bluff their way out of this jam. You'll probably see a lot of confrontation between China and the U.S. in South China sea, but nothing will constitute to a concrete thing so that the two countries decide to go to war against each other.

So, you can relax now.