I don't think it will escalate into anything significant. This is just China stumping its chest once again. Japan has too much to lose in such a conflict.

But, it's just one more piece of the puzzle. You have to take into account everything that's going on right now, on a worldwide scale. Including what Castro said recently about their failed system, and "mysteriously" refuted a couple of days after his statement.

If all this didn't involve death and suffering, and misery, it would be an hilarious comedy. The comedy of life and our reality and the clowns leading/governing us.