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."

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?

This paragraph discusses the events leading up to the outbreak of World War II, specifically focusing on the relationship between Japan, the United States, and Britain. Here's a summary of the paragraph:

1. Japan captures Peking (now Beijing) and Shanghai, prompting the Chinese government to seek help from the League of Nations.
2. The Chinese government hopes that economic sanctions imposed by the League of Nations would be effective, but they realize that the involvement of the United States is crucial for success.
3. The American secretary of state suggests taking "parallel" action rather than "joint" action with Britain, which means that both countries would take independent actions against Japan.
4. President Roosevelt, although opposed to Japanese advances in the Far East, calls for a "quarantine" of aggressor states, meaning isolating them in order to prevent further aggression.
5. The Japanese attack an American gunboat, the Panay, on the Yangtse River, which leads the Americans to consider joint economic action with Britain.
6. However, Britain now wants a political and military agreement that goes beyond what the United States is willing to do. This decision by Britain causes the British Prime Minister Neville Chamberlain to feel that the United States is appeasing Japan, and he might do the same with Germany and Italy in Europe.

In summary, this paragraph highlights the diplomatic challenges and differing approaches taken by the United States and Britain in response to Japanese aggression in China.