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What does Taiwan have to do with anything?
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The PRC has been threatening an invasion for many years now. They consider Taiwan a renegade province. The US considers them an unofficial ally...we even have a law in place that allows us to assist them in the event of an invasion (The Taiwan Relations Act).
The PRC throws a periodic hissy fit over this ever year or so...it pisses them off to no end that the US is selling them weapons. Those weapons...and the threat of US retaliation...are the ONLY things keeping the PRC from invading Taiwan.
It's a long story, but the short of it is this: The PRC believes it owns Taiwan even though it has never actually occupied it before.
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Taiwan does not have economic problems, and they can generate their own money without depending on trade with China.
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It isnt about money.
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The U.S. trade depends almost completely on China for everything that could probably be produced right in the U.S. China produces everything because their people work for $0.05 a day.
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So if we had to, we'd move our business to South America or Mexico where the workers work for $0.07 per day...BFD. Yeah, it would be a big impact on our economy (at least in the short term) but it would hardly cripple us. It would hurt China a lot more than it would hurt us. Their economic growth is dependent on us...if anything that gives us a leash on them.
For us it's a matter of convenience. For them it's a matter of survival.
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If the U.S. decided to reinstate child labor and cut everybody's wages, we could probably be in competition with China.
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I dont know if you knew this or not, but manufacturing labor in the world is hardly in short supply. Thats why it's called cheap labor. There are lots and lots of poor nations that would love our business.