We may have the most underdeveloped defense systems in the region, but wars are not won by technology alone. Look at how the Vietnamese dealt the US with its most shameful defeat and how the courageous African Muslim warriors defeated the highly mobile SEALs in Mogadishu. Wars are won based on skills and stealth. Our Generals are highly educated and trained in that. Most of our field generals are skilled warriors in the field and I would not doubt a Pinoy victory over the Chinese.
There are reports that China's manufacturing sector is slowing down. This is expected considering that the global capitalist system has slowed in most areas of the world. Maritime wars are expected especially in this age where resources are fast depleting in former rich areas and newer ones are being discovered. Efforts made by several countries to effect a code of conduct in the AP region seemed headed toward defeat.
China is an emerging economic power but it has'nt built itself yet as a military one. China will be committing a grave error if it escalates tension in the Spratlys for two reason: one, it will court collective anger from countries in the ASEAN and even in East Asia and two, Japan will not allow such a thing to happen.
If China wants to demonstrate its "military power", it will start with picking a small country such as the Philippines. This is what it did with Tibet, a small Hindu state near its border.
China thinks that the Philippines is weak. Well, go on, let's fight. we may be inferior in military hardware, but we will cut down them down into tiny pieces in a guerilla war.