Vast majority of PBEMs have pay-PP-to-cross-border rule, and vast majority of those have Japan fighting (and often taking) Chungking and in general trying to take China out. This is no flick - by 44 Chinese can R&R+upgrade into a formidable force if left alone, seriously messing up with Japan's eventual retreat from Indochina (John 3rd can tell you a lot about CR's pesky Chinese).ORIGINAL: SheperdN7
Depending on your house rules regarding paying PP's to move restricted LCU's across borders, I would say your strategy will change.
If playing with no such house rule, the all out China plan has a good chance to succeed and you can at least push the Chinese back to Chengtu and Chungking. The benefit though of doing this will be debated until the end of time as it takes a lot of supplies, LCU's, effort, time, and commitment when the Empire is stretched thin as is. Not to mention the only things you really gain is the reduction of a front (granted this is valuable as you can shift troops out of China and into other theatres) and industry, which you will be putting a lot of supply into fixing up. Another perk is the capture of potential B-29 bases that the Allies will stage out of in '44.
If playing with the HR, I suggest try to capture a few bases that have industry and then dig in and go all defense for the rest of the war. The Chinese LCU's don't have much offensive capability until late war and on defense, when used properly (in my opinion this means not spread out, but concentrated) they will bleed the IJA white. Use your ARM units as much as possible, the Chinese have horrible AT capability and your ARM units aren't much good anywhere else after the first 6 or so months.
Also Chinese starting LCUs amount to ~8k permanent VPs for Japan.