In the end, the economic damages well outweigh the military damages that would be sustained by both sides.
We are almost at a point where nation vs. nation wars will no longer be at issue. The global economy coupled with ease of social media has created a scenario where ones own life is worth more than national pride.
National pride has taken a backseat to religious and cultural fanaticism.
Religious and cultural fanaticism will also fade, over time, due to social media.
In the end, the economy WILL prevail. People cannot be depended on to act against their own individual economic interests. If their economic interests are at risk, one can assume they will not support a national/religious/cultural interest movement that will jeopardize their own individual economic interest.
China knows this. Europe and America are aware of this as well.