I have my doubts. My sense is that the government doesn't want this dispute resolved, but is giving the Chinese masses a little leeway to vent. My personal view is that the regime heads are a bunch of stone killers. They have had hundreds of dissidents shot in cold blood in Tibet and East Turkistan. If the anti-Japanese demonstrations threaten the lifeblood of the regime - economic development - they will have these people shot in the streets and their families deported to gulags. The sense from the Asian media is that this is theater. It's not that ordinary Chinese don't feel this way - they're as rabid as they come - but the government sees that any kind of large-scale action against foreign enterprises would drive both Chinese and foreign investments out of China. The net capital outflow in the 2nd quarter of 2012 will become a trend if things like this are allowed to get out of hand.
If the regime is known to shoot dissidents and deport their families to to gulags then aren’t the protestors skating on thin ice? There seems to be no fear as they rampage through the streets destroying Japanese cars, burning buildings, etc. I’ve also seen no police or military presence in the pics I’ve seen, which implies that the regime is tacitly giving their approval to the riots.