The Asians nations are Manchukuo, Mengukuo and Yunnan. The Japanese took a big slice of Nationalist China and now there is a Non Aggression pact between them. The Winter War has happend and the damn SU took Viipuri with the Fur resource I was hoping for
I don't really need the Italians right now. I can deal with the UK but that requires a lot of micromanaging. Every two weeks I make air raids in England to keep the runways, ports and factories destroyed. I also keep an eye every day on the English Channel to see if I can catch another fleet, but it seems they moved whatever ships they still have up in Scotland where I can't reach with Tactical bombers. They have at least two badly damaged carriers in Scotland and one in Mediterranean sea that I know of. Anyway thanks for answers
So Manchukuo is a Japanese puppet from the start, and Mengkukuo is another Japanese puppet created by event once Japan takes the relevant areas from Shanxi and Nationalist China. Yunnan is one of the smaller warlord 'states' of China which was likely swayed to the Axis by Japan itself, no issues there. Japan has a built-in event called 'seize the coast' which was probably implemented because Japan would sometimes get stuck fighting in China, and offer no real challenge, at least on land, to a player playing an Allied or Soviet Nation. It also prevents another somewhat unrealistic eventuality which is that in some cases AI Japan would manage to steamroll all of China quite quickly, and then you get a seriously OP Japan, which can steamroll SE Asia and start pushing into India before Pearl Harbour.
What this event does is exactly what you describe. It's basically a truce in the war in China, once the IJA takes enough ground, where Japan gets most of the coastline, the area around Hong Kong, and some more resource-rich areas further inland. Then Japan gets to focus on SE Asia, and later on the Pacific. Unless the Soviets get in the mix that is.
What about Indochina? Did the event trigger when you beat France?
The Winter war had a similar result as it had historically, no issues there. (It was probably a bit less bloody in-game...)
You're also going to need all those air assets you're using to fight the British, especially the bombers, on the eastern front. Getting the Italians into the war with the allies before you DOW the Soviets should allow you to back off a little bit with the pressure you're currently putting on the UK, as they will threaten the British empire in Africa, and deploy their rather powerful navy against the RN in the Med. More importantly you're going to be giving the Eastern front most, if not all, of your attention, and having to micromanage the air raids in England will be a distraction. All the damage you do to them before Barbarossa will be great, but once you go east, you'll likely have to adopt a defensive stance in the Air War in the west to be able to adequately support your Army. How are you doing on convoy raiding? That's something the Italians are also rather helpful for.
Considering your situation, and how you're looking at it. I'd suggest inviting Japan into the war soon so they can go and get some of those valuable resources in SE Asia, instead of mostly twiddling their thumbs, before they start fighting the US. As for Italy, you could wait until the day before Barbarossa to then give the British another headache to deal with while you shift your focus.