I think what Peter may perhaps be hinting at is that if the nationalism gets out of hand, foreigners may be beaten up or worse. Not sure though, he needs to say so for himself.

Foreigners getting beaten up all over the world since the idea of travel took off. Look what happened to captain cook. Leo dicaprio got really done over - by a bear

Example: What happened a year or so ago when the disputes between Japan and China over some tiny islands took place - People suddenly took to the streets and began to destroy all Japanese businesses, destroy Japanese brand name cars even though they were owned by other chinese people. Without any warning, all hell broke loose. I agree with Peter that it is best to have an exit strategy in place in case of an unforseen emergency.

I for one have made arrangements for the house I own in my name and my bank accounts and other matters because when the writing on the wall becomes clear, I will be the first one out of here. Have you ever seen pirahnas in a feeding frenzy or sharks at the sight of blood - Be prepared - better safe than sorry.

doesn't like you'd have much luck at the airport then if they're gonna go for foreign transportation. And On a train you'd be a sitting duck.

Xenophobia and nationalism are dangerous everywhere. Both are relatively high in China, though the xenophobia is not what it once was. With Japanese the situation does get out of hand sometimes, because cultural and sometimes personal memories of atrocities during WWII by other Japanese, long dead, continue, with encouragement by the state, and are taken out on the living, thanks to the blinkers of xenophobia and nationalism, which encourage taking out anger and hatred against people according to national category rather than according to any actual acts which the individuals concerned may or may not have committed. This can go as far as actual racism. Think of anti-Muslim attitudes in Europe and the West, and elsewhere, where the category is religion rather than nationality (although it may include that too). If you are Muslim, you will probably experience less prejudice here than in most of Europe or North America, with the possible exception of Xinjiang.
On a day to day basis, however, this is rarely noticeable in Kunming, with the exception, again, of Japanese people, who often seem to suffer from a certain amount of rudeness, etc. Still, I've had a Japanese person stay at my place with no trouble, and this person, who speaks no Chinese, traveled alone in various areas of Yunnan and Sichuan, largely in mountain areas, for 2 months with none of the above problems, or at any rate none that he thought serious enough to bother to mention to me.
Now if you're worried about some possible war, etc., note that things go bananas everywhere.

Lets make a hypotethical prediction. Economy dive, things must be channeled, probably the best token out there for channeling, starts with the word T. Then its a Halleluja.

As for those of you who are the average morons, you probably recognize yourself, pls restrain from polluting, thanks.

Japan annexed the northern provinces, kidnapped Chinese girls to work as slaves, used chemical weapons on the local population, stormed Nanjing, causing untold misery in the process and then disregarded it from their own media, refused to give back those kidnapped, and never apologise.

It's very admirable for all these young and trendy Americans and Europeans in China to decide on the locals behalf that bygones should be bygones and none of that should matter.

Don't think anyone's deciding for anybody, just opinions :)
Holding on to crimes committed nearly three quarters of a century ago is no good for anyone Napoleon. Europeans were also experiencing war atrocities at this time but you won't see such a strong xenophobic feel there that you still get here. It's for some reason managed to hold on stronger, maybe due to government help!
The war will be out of true living memory within the next decade or so which you must surely feel will ease any remaining tensions anyhow.

@ Napoleon: 'Japan' doesn't do things, it's a political entity that has people doing things within it. The events Napoleon mentions indeed occurred; the Japanese walking the streets today cannot be accused of having done them. So, if you think the political entity 'Japan' today is the same as it was in, say, 1937, and is likely to do things that harm others, then that entity should be altered. However, there is the question of possible advantages that present-day Japanese have which have arisen out of former atrocities etc. Questionable, considering that whatever advantages the Japanese of the time may have gained were destroyed in the defeat of the Japanese Empire. Anyway, everyone is in whatever situation he/she is in today largely because of historical/cultural heritage from the past - e.g., the enjoyment of much of a continent by Americans descended from immigrants is at least partly the product of the genocide of native Americans perpetrated by persons, largely immigrants, who are long dead. I.e., there are no clean slates.
Again, individuals suffer or enjoy the consequences of the actions of others. The problem is the psychological and ideological confusion of nation and person that is nationalism, promoted by the powerful who run nations today. Hence the innocence/guilt of the individual is punished/rewarded according to the perceived (at least) innocence/guilt of other individuals. Power loves this situation because it allows control of the dominated and makes it extremely difficult for those who are controlled to think clearly.

So if you want to punish the dead, go ahead, if you can figure out how to do it, but leave the rest of us alone unless you can figure out what it is we are guilty of.
I suggest an infinite regress in operation here which goes back at least to the beginning of human consciousness and activity.
Better to look at the present clearly and determine the future rationally, according to the actual needs of real people - not an easy task. Nationalism and xenophobia do not help anybody to think clearly; consideration of cause & effect, and what shared goals we can work out among ourselves, work much better.
Japanese and Chinese media, education, etc. - distorted? Yes, of course, as everywhere - needs correction, and not by those who benefit from distorting it, in China, Japan, or maybe Antarctica.
@Redjon: would be nice to think so, but notice hatreds perpetuated over centuries on the basis of persisting (yet ever-changing) group identities.
WHO BENEFITS from this? Overall, I would suggest: none of us.

The war was 70 years ago, so It's entirely reasonable to expect people to still be alive who were effected. Older people may have lost husbands, wives, brothers and sisters and younger ones told of the aunts, uncles and grandparents that a bit of Japanese empire building cost them.
Now, I don't think its unreasonable for that to leave a bit of an impact.

If what's being said here is 'lets all forget about it and make money' then, for me, no amount of Toyatas and JVCs are going to equate to a loved one.

It seems very rich coming from Americans many of who still go on about how they are victims of things that happened HUNDREDS of years before they were born, not 70. And in a society where people who have such mundane experiences as spilt McDonalds coffee and teachers not allowing students to use a red pen, are 'victims'.

In Europe there are people in the streets because foreigners are taking jobs and government housing, not murdering, annexing land and mutilating bodies, taking JOBS. That's enough to get their goose up.

Now when it comes to somewhere else, far from home, things are different and should be considered differently as it has no impact on their lives and can be used as an opportunity for a bit of righteous halo polishing.

Pot, Kettle, Black.