I do not think the Chinese have thought this through enough

China needs us a lot lot more than we need them. From Russia Today:

China threatens to sever ties with any US firm linked to selling weapons to Taiwan
The Chinese foreign ministry has warned that American firms would be banned from doing business in China if they are involved in any arms deals with Taiwan.

“In order to safeguard national interests, China will impose sanctions on US companies involved in arms sales to Taiwan,”foreign ministry spokesman Geng Shuang told reporters on Monday. “The Chinese government and Chinese companies will not cooperate and do business with these US firms,” he added.

Answering reporters’ questions, Geng said the details about such companies and the timeline of any penalties against them will not be disclosed at present.

Beijing warned Washington last week “not to play with fire” and to cancel a planned $2.2 billion arms deal with Taiwan, accusing the US of interfering in China’s domestic affairs.

And a bit of background:

The planned arms sale would violate Beijing’s ‘One China’ principle, which views Taiwan as an integral part of China.

Relations between Beijing and Taipei have deteriorated since Taiwanese President Tsai Ing-wen, a member of the island’s pro-independence Democratic Progressive Party, took office in May 2016. China suspects her of seeking formal independence with support from Washington.

We have all seen the ineffectvie "Free Tibet" bumperstickers in liberal cities. In reality, if we sent in our military and liberated Tibet, all the progressives would run around with their hair on fire. Narrative versus reality again.

Now China is getting more insistent about Taiwan being a part of their worker's paradise and Taiwan is having nothing to do with it. China needs the revenues that the Taiwanese companies are getting. Given the choice between Chinese and Taiwanese machine tools and parts, the Taiwanese are profoundly better for not that much more money.