Yeah. The retaliatory nukes from the subs would be headed out to China from their coast pretty fast.
As for the home eviction thing, I watched something on BBC that said developers get a hand from the government to evict the locals off prime development land. While obviously the locals may not want to move, the situation wasn't as bad as it was previously since the property market's fallen. That time the evicted people were getting terrible compensation that was nowhere near their property market value.
As for China's politics, I think it'll be determined by the young generation that's wired to the net. They obviously yearn for freedom as we see them switching to blogs etc to circumvent the censorship. It's not like America's bastions of the internet like Google, Microsoft are making it any easier but whatever. On the other hand those dudes can be pretty radical/nationalistic in their own right. It didn't take much for them to get out on the streets looking for Japanese to lynch.
China - Have tanks, will roll.