It seems to me that:
The people in China are afraid that the United States will invade China through Taiwan, and it seems to me that some people in the United States are afraid that the China will overrun the world with its economic and military power.
It is quite possible that the world will again lapse into a fear mongering contest with military might.

From the site http://www.washingtonpost.com/wp-dyn/content/article/2010/08/16/AR2010081605074.html

“China broke off most military ties with the United States this year after the Obama administration approved the sale of $6.4 billion worth of arms to Taiwan. Since then, high-ranking Chinese military officers have lambasted the United States and its policies in Asia in unusually harsh language.“

Did Obama explain to the Chinese why they are selling $6.4 billion worth of arms to Taiwan?
What would the US reaction be, if some country would supply such a quantity of arms to Cuba for instance?