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Unless Taiwan can build more nukes than China (and be able to land them in China), I really don't think a nuclear Taiwan would be any more of a deterrent than a non-nuclear Taiwan. A nuclear test by Taiwan could very well be perceived as a declaration of war to the Chinese. It's utterly foolhardy and serves no purpose.

Having all of East Asia nuclearize is NOT in the best interests of the United States believe it or not. Rice and the Bush administration are well aware of this. The end result of a nuclearized East Asia is that US forces leave the region, it would do jack squat in containing China.

Japan isn't gonna nuclearize, even if it had nukes, it wouldn't test them.