Schweet! We are back in business with a bang!
I'm not sure how this will go on but by the looks of it, it's half the world ganging up on Japan. The pressure would probably enpough to force Japan to concede as mentioned in your previous update. Which kind of reminds me, Is your TL's Japan same as IOTL's Japan?
This mini-update should bring light to the Japan situation.
World Reaction to the "Shanghai Incident" and the fall of the Taisho Democracy
The reactions to the "Shanghai Incident" around the world were mixed and evolving. China's 'traditional' allies in Germany, Italy and the Soviet Union made a predictable stance - they 'deplored' Japanese 'Aggression' and 'supported the legitemate cause of the Chinese people against extra-territorialism.'
The position of the western powers was more complex. Although France and Britain had universally condemned the Japanese massacre on September 28 they were alarmed by the quick events that ended up placing Japanese Shanghai into Chinese hands - if it could happen to Japan - it could happen to them. The massacre of Japanese nationals and mob violence leading to the destruction of several foreign-owned properties did also not do much to help China's case. These factors, combined with Chiang's belicose election-campaign rhetoric and the support for China from Germany, Italy and the USSR served to worsen relations between China and the Western Powers. Pushing China even further to the hands of the very anti-western powers. Therefore with China seemingly falling into the 'non-western' camp the western powers turned to courting Japan.
You can see why they call him the "Lion" Prime Minister
Japananese reaction to the event was swift and led to the fall of the "Taisho Democracy" and the assasination of Osachi Hamaguchi. Called the "Lion Prime Minister" Hamaguchi was probably Japan's most successful democratic politician to date maintaining power for 6 long years. Under his tenure Japan successfully negotiated a 10:10:10 parity in the London Naval Conference and secured the basis for a Western Alliance. His economic policies also generated enough money to keep the militarists happy. His star rose even further with his government's assured response to the 1933 Earthquake - Hamaguchi seemed to prove that democracy could work for Japan. In 1934 he successfully introduced a universal suffrage bill which gave women the vote. However at the time of the "Shanghai Incident" Hamaguchi was overseas in South America attempting to secure some trade agreements to procure raw materials which the rapidly expanding Japanese economy needed and to bolster diplomatic relations. Although he cut his trip short, by the time he returned the Chinese had already taken Shanghai. Seeing no merit in a futile expedition to regain Shanghai he sought the support of the League of Nations and the support of the Western Powers before he took military action.
For the Japanese ultranationalists, this was not the right answer. Hamaguchi was murdered by a fanatical ultranationalist and a right-wing military junta led by Senjuro Hayashi. They used Hamaguchi's assasination as a pretext for dissolving democracy and granting themselves 'extra-constitutional rights' to 'protect the Emperor and his Realm.' It is a great historical irony that just as China was entering into the pantheon of democratic nations, Japan was leaving it and that this two would be fighting the Second Great War on opposite sides.