Normally, I would agree with you on this point, but China has shown itself to be an exceptional student of history. It was able to replicate the Japanese/Asian Tiger model on a massive scale, and achieve an unprecedented run of economic growth. Similarly, looking at how Japan's rise caused frictions with the US into the 1980s, I cannot accept that developments such as the following are coincidence:
Chinese investment boosts U.S. economy: report
- Xinhua | English.news.cn
The report, New Neighbors, co-released by the National Committee on U.S.-China Relations and the Rhodium Group consultancy, said that from 2000 to 2014, Chinese firms have spent nearly 46 billion U.S. dollars on new establishments and acquisitions in the United States, most of them over the past five years.
(...)
Chinese-affiliated businesses now directly employ more than 80,000 Americans, said Daniel Rosen, partner of the Rhodium Group.
This long payroll was compared to less than 15,000 people five years ago, while excluding indirect employment, or an addition of tens of thousands of jobs.
Again, China studied Japan's strategy of countering American dissatisfaction with the trade imbalance by investing in the US and employing Americans.
The CCP leadership is clever, and has been advancing China's aims rather proficiently for the last few decades. I hope I don't need to bring up the actual precedents, but the island reclamation project is a departure from the previous model (as my Chinese friends here point out, concerning Deng Xiaoping's dictum to keep a low profile), and seems to be entering the "our place in the sun" mode that has proven disastrous for more than one nation in the past. Perhaps "this time will be different," but aren't those often famous last words?
To me investing in America is a matter of low trust in Chinese markets, and an excess of funding with no where to put it. Even if Chinese market can prove it self, it would take time and even then it's never a good idea to put all eggs in one basket.
China is not Japan, Japan was in the liberal order, while Americans can eventually accept Japan, it won't accept China without accepting our system works. I have been on record that whether democracy works or not in China is not as relevant as in today's cut throat world, democracy would stagnate China, at least in the short to medium term, but we can't afford any slow down in any term, nobody can really, in today's social media world.
That, and Japan was never in serious contention to beat America, with less land than an American state, and less than half its population, Japan would truly have to be exceptional to even come close.
Now onto your last part, models change, the world is not the same as 30 years ago, as you pointed out. If not, why would we react the same as the Strait Crisis in 96, the ship "hijacking" in 93 or the embassy bombing in 99, or the sanctions in 89.
Regarding time in the sun, never is a good time for America, but not so much for us. Would you feel better if we did it when we are the biggest economy? Rather than now?
The difference between Germany as well as Japan, and China is Germany faced equal opponents to itself more or less, and Japan is in a race against time to take advantage of the situation.
China has time on our side, the longer this takes the stronger we get. It doesn't really matter if the US gets stronger or not, because we will move just that much faster.
And this is how I can remain optimistic, despite the nationalistic mud-slinging we often observe here. Who would have imagined 30 years ago that China would become the peer competitor of the US? 30 years before that, the US fought a war against a Soviet proxy, allied with China. 10 years before that, the US fought a world war triggered by its attempt to protect its friend, the Republic of China.
Similarly, what will the world look like 30 years from now? Rivalry or war are not inevitable, they are just two outcomes among many. We may find that the world is a radically different place, with the US and China sitting on the same side once again. It's important not to burn bridges, to ensure that such a possibility remains viable. War would close that door, but trade keeps it open.
The South China Sea is a game of dominoes, as soon as we get one claimant to cave, the rest will fall, no one wants to be the last one standing against China, never a good idea, even for the US, much less the rest. After that, the US claim of anything, freedom of navigation or other wise will be proven to be a false threat and in terms of military terms, if no one else sees Chinese presence as a threat any more, and there is much upside(as I previously stated) America would lose legitimacy fast in the region.
China and US can work together, as demonstrated by US Russian working relationship. What this relationship has taught us is if the US can accept you as an equal, we may not be allies, but we can work together on a lot of things.
We can see some of it now between China and the US, Africa, Middle East, Central Asia, environment, global economy(currency value) and more.
However, never become weak, as this relationship has also demonstrated, if America can bully you at will, they will, without a second thought. Though we got plenty of experience in that.