This is exactly the kind of mind-chess that China is using that will result in Americans becoming the world's cheap labor market within 50 years, when your most prized possesions will be a rice bowl and bicycle.
Taiwan will ultimately decide to buy those destroyers and subs from us. So China will be unable to conquer them, simply because Taiwan is an island nation and ships with big holes in their sides sink rapidly.
God is still in control, and evil will still be defeated in the long run.