I do not understand this paragraph about the fifth step to WWII..what is this paragraph saying...can someone summarize?

"At first Peking and then Shanghai fell to the Japanese, the Chinese government appealed to the League of Nations. Sanctions would work only if the United States joined in them, but the American secretary of state suggested "parallel" rather than "joint" action with Britain, and President Roosevelt, though clearly opposed to Japanese advances in the Far EAst, called for a "quarantine" of aggressor states. But following a Japanese attack on the American gunboat Panay on the Yangtse River, the Americans appeared ready to discuss joint Anglo-American economic action. However, by then Britain wanted a political and Military Agreement that went further than the US was prepared to go. This decision appears to have moved the Conservative British prime minister, NEville Chamberlain, to feel that, since the US was "appeasing Japan, he might do the same to Germany and Italy in Europe."

2 answers

1. Japan captured part of China.
2. China and the League of Nations wanted Britain and the U.S. to not do business with Japan (sanctions).
3. At first, the U.S. refused to join Britain in placing sanctions on Japan.
4. After the Japanese attacked an American gunboat, the U.S. decided to cooperate with Britain in economic action (sanctions) against Japan.
5. By this time, Britain felt that the U.S. was being soft on Japan (appeasing it), and Prime Minister Chamberlain considered appeasing Germany.
so because all of this was done did this create tension? Your explanation is clear but I really don't understand how this was one part of leading to world war II?
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