They cannot win. No one can. They only think they are acting in their own interest. If they want to press the issue, the US could unilaterally destroy their entire fleet in a matter of hours, if they chose. The Chinese have invested a lot of money recently in building their navy, and they would be devastated if they were to lose it all in an instant. But of course the US would stand to lose a lot by taking that step, economically mostly, and perhaps invite destruction on our allies. So all the Chinese are doing is creating a stalemate that can only end poorly. This is not about power in the international community; it is about power at home. True power in the international community is in economics and diplomacy. They are exposing themselves as amateurs here, I'm afraid.