They can upgrade until their face turn purple and it won't change anything. Those countries are weak not because of China, they are weak because of who they are.
But to answer your question, no. China has no beef with our neighbours, if you think this is about Vietnam, Philippines and Japan, even India, you are dead wrong. If this is about these countries our current power is more than enough.
This is about the United states of America.
China is not competing globally with Japan, but with America.
why indeed, but the truth has never matter much in American media, has it? At least not when it's about China, though we both know that's not the only thing.