You forget one thing: Yes i said the world will lose, but China will lose even more, since Western companies with massive investments in China will be forced out of the country, they will probably like to remain in China since China still has better logistics/infrastructure etc which keeps cost down for western companies who then export them globally, but due to sanctions/hostilities, they will HAVE NO CHOICE THAN to move out to other developing countries(even though its true these countries wont/dont have the industrial/logstical,supply chain that China posses). So yes it will be a lose-lose for both countries and the world, But then again China will lose even more.
Since China is still a developing country, while the U.S/West are already highly developed and an advanced countries who can still invest in other developing countries(albeit it will get less profits/return there than in China).
Lose more, that's where you are stuck on. If you shoot and kill me, and I shoot and put you in a coma, sure you are still alive, but are you REALLY, better off? The world is trying to get richer, not see who can survive on the least amount possible. Sure China would crash, the US would survive, but on what condition.
There's a reason one can pull the plug on coma patients. It's not because they hate that guy.
China as i said, needs to first complete its development cycle(your leaders understand this crucial stage), any conflict now will be the worse thing that can happen for such a developing country. Only your rivals will benefit from that(and they are praying for one.lol). Right now your are still trying to move up the value chain while avoiding the middle income trap, and mind you many western companies are also cooperating and transfering technologies to Chinese companies so they can get more market share. So its a win-win situation right now. Making them move out of China will be big lose for China as well. Plus why change a winning team/strategy?? Your economy has been growing fast for the past decades and will keep growing healthily baring any major conflict, so why start one? It will only set back your economy and postpone your development goals/objectives, plus all the social instability that comes with it etc.. Moreover military sanctions are totally different from economic sanctions, since economic one cripples a country/makes it grow far below its potential, military ones doesn't(in fact it tends to do the opposite.lol)
You said the US can put China on economic sanctions, hence my statement. The US can do anything it wants, but at what cost.
The key difference here is you think losing less is acceptable, and my point is, once it gets pass a certain point, what does it matter if you lose less or more.
So attacking/sinking a U.S navy destroyers like some keyboard warriors here desire will be the worse thing China could do. That will be something that i dont think even western public opinion who has been against any involvement in conflicts abroad will bulk at, they will probably be the ones to be calling for a response, since that in itself is an act of war. So the effects will be unpredictable.
Why attack? I bring the question to why wouldn't America attack. If you been to any comment section on the matter lately, that's been called. Believe me. Sure some argue, ours is just some island, but I would say stick and stones may hurt us, but looking at us funny won't.
I know why you said what you said, but let's just say, there's no shortage of trolls on either side.
You said the fight is over hegemony in East Asia(more like Asia as wholesince SCS is already at edge/periphery os South east Asia as well.lol) and that how do i think China and US can discuss that? Well, for one they will have to at some point, since the U.S is a defacto Asian power with a long history of naval presence, military bases,territory(guam), and allies in Asia pacific from Australia to Jpan to S.korea to Philippines. In short the U.S is an Asian military power/hegemon. So China and the U.S will obviously have to sit down at some point and discuss rules of engagement and both will have to make some concessions. Since i dont see any of them leaving Asia.
The US is about as much an Asian power as China is a South Asian power. You can make the case either way, it depends on how you want to see it. (China has Tibet remember and Nepal is South Asia)
The US can leave Asia quite easily, the bulk of their troops is for North Korea. If China were to take North Korea, (not as far fetched as some might think) it's an effective way of forcing the US to move the bulk of those troops out. With less than 2,000 troops left at that point, what does it matter if they keep it there. Even now a 50,000 doesn't sound as intimidating as some might think.
The smart thing to do is obviously to talk, we each make concession and work together in other areas. (see how effective we are when we agree the environment and such.) If you ever met a third person I can tell you that's difficult, at least within 3 decades when China isn't decisively stronger than America.
Plus what type of pyrrhic victory do you think China can achieve today against the U.S if its starts a war? There wont be any victory whatsoever(whether pyrrhic ordecisive) , only losses for all. Even the U.S doesn't wants a war, its just trying to remind China who is still the boss in the region i think. Chinese leadership probbly understnds this as well.. Both countries are matured enough not to start any useless war. There will be posturing and the U.S will probably continue its patrols, while China will keep building its islands. But there will be no wars. Afterall, last i checked Vietnam, Philippines and other claimants have built islands or enlarged the ones the control long ago, dont seee whats the big deals. Vietnam even holds more islands/territory in SCS than China or any other country by far. So i dont see whats the big deal here. All parties should sit down and discuss, so they can come to some understanding, else this dispute willl continue forever.lol
NOTE: All this is just hypothetical talk shows.lol There will be no war obviously, just some diplomatic and military posturing from both sides and that's it.
It doesn't have to be military victory. Though if China unleash all her military, it would still give America a run for their money.
I also reverse this question, what exactly would happen to America should a war happen, keep in mind, without firing missiles into China, there's only so much that can be done, and should missiles drop or even be aimed at China itself, then the no first use policy is out the window, and then nobody wins, even a Pyrrhic one.