China wants to resolve the issue with the countries involved and not with the international bodies. If this can be resolved, what could these small countries do if China will lose its military might on its claims on the disputed islands.
China may be emboldened to bully its neighboring countries due to its $9240 billion GDP which is the second highest in the world. This GDP also allowed it to have a military superiority against its neighbors including Japan. Even if their total economies and population will be combined, it would still be no match against China. In addition, China is the only nuclear capable state in that region.
China however must take into account that there are two countries (Philippines and Japan) among the claimants that has Mutual Defense Treaty with the United States, the largest economy in the world and strongest military in the world. If China attacks Philippines and Japan, this would make the Mutual Defense Treaty take into effect dragging United States in the war.
In addition, the international community will also be against China because Philippines has brought the issue to the international court for arbitration and waging a war against other claimants will be trespass the case before international
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