A war between USA and China would be a tragedy for all the world.
There's no need to fight
Talking could solved all problems here in my opinion

I also think China is overreacting....
The problem is that overreacting is what they need. China as a one party state needs to keep the people happy and nationalism is part of this. Nanjing Massacre Day became the newest day off in China. The question is, how many people did the Japanese kill compared to Mao? Well, clearly Mao killed a lot more. So why not a day for the dead who died at the hands of this maniac? Oh, because his statues look over many parts of China and his face is on all the bills. They don't allow protesting, unless you're protesting against the Japanese.
China will be a massive threat to your country in the future, just as the US has been a massive threat to oil rich countries in the past. These powerful countries aren't going to act nicely, if they had women running their govts then maybe they'd be better behaved. Men are arrogant, warmongers.
Since 1979 we have always had "normal" relations with China frigidweirdo.
Well sometimes there were little "arguments" between us but no big deal

I think if we maintain our neutrality we won't have any problem with them

Talking about men and women running government I'm convinced that men or women there's no real difference.
Politicians are pretty much the same regardless of their gender
Yeah, "normal", and you use 1979 because they invaded you but forgot that a country that had just defeated the USA wasn't going to stand for a country as poor as China trying to take over.
However this also doesn't mean there isn't tension between the two countries. While you were dealing with the US, the Chinese came and took over some Islands, didn't they? And no one is willing to give up anything in the South China Seas, and China is building a large navy, militarizing those Islands and has actually decided that the whole sea, about 3 feet from your coast line, is in fact Chinese.
China claims everything inside the red line. Vietnam claims everything inside the blue line, that's a lot of the same bit of sea there. Now, who's going to win in a war now? If China wants it, they take it. If Vietnam wants it, **** off the Chinese have a stronger military. That's "normal relations"?