Busk stops with Bush. According to this article Bush went along with the ChiComs all the way.
He's giving up (US support of) Taiwanese independence to stop North Korea. An unpalatable trade at best, but geopolitical realities have a way of trampling on romantic notions.
We can't deal with Iraq/Iran and North Korea at the same time, and everybody knows it. We've chosen to play our cards in the Middle East, which by default means that China will be able to play a stronger hand in Asia.