Haha, who are you by the way?
i'm just an average western (Dutch) citizen businessman..
and what i recommend China to do, is to focus on the future, short-term, mid-term and long-term, and to be completely, brutally, honest and open with the other nations that have placed a claim in the past on parts of the South China Sea (and other, more land-based) territories, which is ultimately based on 2 things : security, and economic harvest of resources in such territories..
China can from there on play as hardball as it wants, but i still recommend she tries to be *fair* instead.
Because only when ordinary people around the world can be told by the free press of the world and movie industries of the world that China is being *fair* *and* *honest* in it's claims, will China ever have any real basis for it's projection of the military that it's now spending a huge chunk of it's fortunes on.
Fortunes that could likely dry up quickly at some point once the west establishes a track record of warning China in more friendly tones.
Ultimately, this conflict is all about who has the more powerful coalition of nations, and because in any larger scale war it's the civilians who suffer, we here in the west convince our populations first of the need for war (which also gives our adversaries time to change their behavior), before we actually even *start* to make such wars a reality.
Meanwhile, over in Chinese leaderships they're playing a combo (metaphorically speaking) of the boardgames Go and Chess, and the cardgame Poker, combined with plenty of aggressive secrecy guarding and reprisal doctrines for dealing with "dissidents" (whistleblowers, we call 'm over here in the west)..
i honestly don't think that the Chinese are going to win with these ways of behaving themselves. Their ancient and brutal ways of dealing with dissidents and seperatists, are outdated in the age of viral news over the Internet and TV[1], but i'll email plenty of news papers including some Chinese ones that serve the internet public in English, about this post and it's content, to give my theory as described above here a chance of making it into reality.
[1] i think a much more positive and friendly way (honest popularity-increasing measures) is needed to prevent seperatism in the future, along with a more regional approach to the distribution of power. perhaps even a new consititution all together, before economic hardship caused by world-wide unpopular views of Beijing causes mass rioting all over China at the same time for a prolonged period of time, which has historically always been the trigger for rewriting of constitutions.
Sometimes it's better to attempt to pre-empt the *possible* worst-outcomes, with the very means sought by such events.
Honest and fair cooperation. That's the way forward, i hope and pray.