China fears no one. They have no reason to. No nation on Earth poses a real threat to them. They have a huge military that is making tremendous technological advancement(thanks to us) and a growing, soon to be thriving economy. (Once again thanks to us). Certainly, they have no significant navy to threaten us but they are well placed to invade almost all of Asia from ground and air. With a stronger economy and increased GDP they will soon have a powerful navy.
They are using the middle east nations. China will eventually sit back while WWIII is started by Islamic nations who will attack India and the West, possibly even Russia. China will walk in and pick up the pieces. This has been their plan for decades, maybe centuries. I expect that when it happens many will be happy to see them step in and "restore order".
They are our greatest enemy right now and the greatest threat to peace on Earth. They are at about where the Japanese were 5-10 yrs prior to WWII. There will be SHTF. It will be on the other side of the planet, though, and it will be bad.
Consider also that if they control the middle east, directly or indirectly, then they control oil flow to the west. And the rest of the world, for that matter.