Why a stronger Dutch navy still avoids war with Japan

Would a Netherlands with a German hand-me-down fleet intervene in the Sino-Japanese War?

It could contribute, but it probably would not intervene without Britain or the United States because Japan would still outnumber it.

Capability does not automatically create political willingness. A stronger Netherlands could intervene, but Japan would still possess greater mass in East Asian waters. Britain and the United States had still larger fleets and limited themselves to diplomatic objections. The Netherlands would have little reason to accept the risk of unilateral war while remaining outnumbered by Japan.