I agree with Kampfwagen.
China currently has about enough landing crafts and amphibious assault ships for 3 infantry divisions I believe (correct me if I'm wrong). Those are going to be used in case of an invasion on Taiwan. Other Chinese offensive capabilities include short ranged fighters (hey, the Flankers don't have enough range to cover too deep into countries like, say, Russia or Kazakhstan), few long ranged ballistic missiles, many obsolete and near-obsolete ships, with a few modern, deadly, and atleast semi-stealthy ships. These aren't enough to go against any navy in the area, except perhaps the Koreas, and perhaps Taiwan. A good number of noisy submarines, with few very silent diesel subs. S-300 SAM's and a hellish number of AAA. Along with hundreds of short ranged ballistic missiles.
So with these forces, and perhaps using a few highly modernized divisions, China could invade and defeat any country bordering China, with the possible exception of, as previously stated, India and Russia. But also as previously stated, war costs money, and China just wants to develope its economy in peace right now.
From this we can sum up that the problem China is facing now is having a moderate to low number of advanced, or atleast decent equipment, with a huge number of obsolete equipment. So it is reasonable to assume that China will use these crack divisions for any limited warfare, but will use these highly advanced divisions supported with divisions of lower technology, and which received lower priority of modernization, in a broad war, such as war against India or Russia, where large number of troops are required to keep up a cohesive front. China has these advanced equipment, but does China know how to use them proficiently? The PRC has never extensively used aircraft to their advantage in past wars, never been at war on the high seas against a worthy foe, and the past wars that the PRC has fought all involved Soviet doctrine, which is proving more and more out of date. An very important aspect of offensive capability though, is not due to the quality or the number of troops, but the tactics, as seen in WWII. Can the PLAAF efficiently give support to advancing armored columns is just one question.