"Service Battery"-service covered under AppleCare?

I have a mid-2010 13" Macbook, covered under AppleCare until August 7th, 2013.
My battery has recently started acting strangely, or to be more specific it doesn't act as it did previously.
I thought my charger might be broken, and I replaced it, but the problems are still present.
- The total charge my battery holds has been strongly reduced in a relatively short period of time.
- The battery will NEVER become 100% charged. It stops at 98 or 99%.
- The cycle count seems a little high considering I rarely use the macbook without being connected to a power source.
Battery Information:
  Model Information:
  Serial Number:          W0024U0LTE1LA
  Manufacturer:          SMP
  Device name:          bq20z451
  Pack Lot Code:          0000
  PCB Lot Code:          0000
  Firmware Version:          0201
  Hardware Revision:          000a
  Cell Revision:          0165
  Charge Information:
  Charge remaining (mAh):          4201
  Fully charged:          No
  Charging:          Yes
  Full charge capacity (mAh):          4244
  Health Information:
  Cycle count:          879
  Condition:          Check Battery
  Battery Installed:          Yes
  Amperage (mA):          955
  Voltage (mV):          12510
A year and a half ago I moved to China, and I have continued using my macbook as normal after the move. Could the change in battery performance have anything to do with the electric currents being different over here? My macbook was originally bought in Europe.
I'm wondering:
- Will my battery have to be replaced?
- Will it damage my computer if I don't replace my battery?
- Does AppleCare cover service/repair in this situation?
My closest Apple Store is in San Li Tun, Beijing.
- Could I go there directly and inquire about service, or would I have to contact them online first/make an appointment?
- How much would a new battery cost if my battery ends up needing replacement?
Thank you very much for reading!

Since you have Apple Care I would call and make an appointment for the Apple Techs to evaluate the battery. Your battery has less than the 1000 cycle life considered normal.

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