All countries have interests. When those interests coincide or when one side is much weaker than the other you will have peace. When interests do not coincide, the differences are irreconcilable and there is not an overwhelmingly dominant power in the equation you will often have war. "Capitalism and free trade = peace" sounds great but it is nonsense.
Any hostile action by China would completely devastate it's economy. The more integrated it's economy becomes in the world the more difficult, if not impossible, it will become for China to solve any problems militarily.
China will be conquered by Freedom before it even knows it, to the benefit of it's citizens and the world.
I guess we will just agree to disagree on this issue. I am optimistic that I am right. :)