China is very practical - the Type 92 APC, weakly armed with a .50 cal is more than enough for the civilians it will most likely be called to engage.

 

They do have a few potential border hot-spots where a real IFV would be useful but they still prolly have a 'quantity over quality' mentality.

 

Ultimately China's geography has them boxed-in:  no real potential to expand westward from tibet into the 'stans, north into Mongolia or Russia, and who really gives a rat's ass about Burma or Viet Nam (including China!)  Not enough upside to make any hostile take-over profitable.  Far easier to destabilize and then put puppets in charge and get favorable contracts than to try to take and hold.

 

Military might is implicit behind all hardcore diplomacy so we will see more military development by China but until they have their first substantial overseas military base in my mind fear-mongering about china's military might is more about military contracts than actual security threats.