UK national living in Japan - Chinese visa procedure

Dear Sir / Madam

I am a UK national living in Japan and would like to apply for a tourist visa to visit China. Looking at the application form, is it necessary for me to book flights and hotels in order to apply for a visa? What happens if my visa application is declined and I've already paid for flights and hotels?

Also, in Japan can I apply for the tourist visa at the Chinese Embassy directly? I read something that maybe said only travel agents can apply for the Chinese visa on my behalf?

Thanks
Paul