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It did so quite often few revisions ago which was a suicidal behavior so we toned this down. Japan in the current version is too busy with China and the Allies anyway.
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Current version 1.01.1? My last game (haven't applied 1.01.1, only 1.01) Japan didn't have any problem with China. It's gets stuck by a stack in India/Persia border, and then the United States nukes it a bunch of times but never invades it. It is irritating to see them stuck there, they could attack SU through Afhganistan when it's at war with Germany. If it spent the time it used being stuck in India to attack the Soviet Union it might tip the scale for Germany against SU and save it from being conquered by them later. But this would probably require some AI scripting for it to not simply lose Manchuria.
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