Sino-American War of 2117

The Sino-American War of 2117 (also known as 'The Real War) was fought between China and the United States on the US's west coast.

Causes
For years China had been distributing Real throughout the US. Its use had been undermining productivity since many citizens would rather "get Real" than work or do anything else. The US brought the issue to a head at a peace conference held in Los Angeles. Secretary of State Jackson, Secretary of Defence Berkowitz and Secretary of the DEA Kojima met with Third Minister Hu Zhiaoxing and issued an ultimatum of war if distribution did not end. It didn't so the US struck the first blow.

United States Offensive
The US began its offensive with air-strikes by F-27 aircraft on the Channel Islands, particularly Catalina Island of the coast from Los Angeles. However, the Chinese demonstrated the defensive capabilities of metareality technology by defeating the attack. Avatars appeared in the cockpits of the aircraft and forced Real onto the pilots. This established control over their senses and deceived the pilots into crashing their aircraft.

The US resorted to a second, naval attack on the islands. Warships, using elaborate spoofing, approached the Chinese holding in order to shell them. However, the Chinese again used metareality technology, this time more directly. For instance, the USS Rumsfeld ran into a giant brick wall at flank speed, causing enough damage to sink it.

Attempts at Peace
Hu met with his US counter-parts via video conference and indicated that the US attacks were ineffective. He offered relatively soft terms for peace: The US officials rejected terms. The war continued.
 * 1) That the US allow Chinese distribution of Real without legal penalty.
 * 2) That Chinese citizens arrested in the USA be tried in Chinese courts to ensure fairness.
 * 3) That the US pay a moderate indemnity.

Chinese Counter-Attack
The Chinese launched a punitive raid on Los Angeles. First all power and telephone services (both cell and landlines) were cut off. Then avatars appeared throughout the city warning the residence to flee. Two and a half hours later what appeared to be a giant Pyrex bowl covered the city. However, it was impervious to missile and artillery fire. Then, what appeared to be lightning began causing random damage within the bowl.

Also, companies of conventionally armed soldiers entered the city. They left civilians alone unless they offered resistance. (A surprisingly large number were armed and not surprisingly angry). Also, US soldiers trapped within the bowl were allowed to surrender unless they too offered more than token resistance.

Peace Terms
After this show of force and the continued impotence of US forces, the US had no option but to surrender. As Hu had warned, the terms were harsher:
 * 1) The US would place no further restriction on the distribution of the entertainment known as Real and any criminal or civil penalties would be declared null and void.
 * 2) China would receive a 99 year lease on the ports of San Pedro and Long Beach for one dollar a year.
 * 3) These ports would have no duty on imports although the Chinese reserved the right to impose duties on U.S. products entering the territory.
 * 4) The US would pay an indemnity of twenty trillion dollars in gold or petroleum or uranium or hard currency to be agreed upon. The full amount was to be paid within ten years.