Japan would be fine under a Chinese hegemony, in fact they would probably fair better than they are now.Understandable from Japanese perspective though. Would you want a dominant US that’s far away, or a dominant China right next door.
Japan's ruling class however will be fucked, as they are a direct continuation of the WW2 government. They will either have to be replace entirely or radically changed from within. And they know this, that's why they have to keep visit that shrine to keep the faith. Once a faction arise that want nothing to do with the imperial past all hell will break loose.