Right, it's a stalemate between the USA and China. But China can take Taiwan. If we blockade China's oil deliveries after they invade Taiwan, won't they interpret that as an act of war? The escalation could get nasty pretty quick. They have nukes.
When the USSR invaded Afghanistan, we were afraid to lock horns with them, because they had nukes. We boycotted their Olympics and gave Stingers to the rebels. China has nukes too. They have Olympics coming up. So we could always do the boycott thing.
I think the USA is bluffing that it will defend Taiwan, and I think China suspects it.
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