You're comparing this to an official policy of appeasing German and Italy's annexation of territory (and various other violations of the treaty), in an era of raising fascism and communism? Really?
It's fine if you want to say that this is bad, worrisome or even evil, but lets call it what it is: the strong bully the weak. This is how the world works.
So far China has largely been about flexing its economic power. This seems completely reasonable; why shouldn't they negotiate hard? I agree it's terrifying for those in the region that they could flex their military..but that's what superpowers do.
I often think that if Germany had won the war people today would be talking about how it wasn't pragmatic not to do business with the greater reich. "Sure they ethnically cleansed eastern europe but whataboutamerica?"