I agree, they are correct.
But I disagree they are our masters.
The United States has, for too long, acted like the policeman of the world.
In this instance the nations involved will have to settle their differences without our intervening.
Unfortunately, that area of the world has tremendous strategic, national-security, and economic significance to the US, as an enormous amount of ship traffic passes through there on its way to the Straits of Malacca off Singapore. If China controls that whole region, they’ll have the world economy by the neck (more than they already do).
I think the Chinese are unhappy with having to deal with Hillary Clinton - they do not trust her, nor do they respect her.