The Chinese would still allow production if the took Taiwan. Just like they do chips TVs and phones out of China. It’d just be China’s money. This won’t come to pass nonetheless. China may want Taiwan but the cost of taking it is too high.I think you're right on the first point. They'd probably try to avoid destroying the factories if they invaded, and I agree that it's unlikely they'll actually invade.
As for arming Taiwan with nukes, never gonna happen. We’d breach every nonproliferation agreement and open the door to China or Russia to arm Iran or some other regime in order to create immense pressure on the US and our allies. Originally Posted by NoirMan
As to the second point, I agree too that's unlikely to happen. However, Oeb's idea is thinking out of the box and interesting to contemplate. The Cuban missile crisis ended with the withdrawal of medium range nuclear missiles from Cuba and Turkey. And neither Cuba nor Turkey was ever invaded by the USA or Soviet Union respectively. I believe the USA and USSR had short and medium range nuclear weapons on the soil of third nations during the cold war.