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Maybe you don't get the drift. But if the arms ban is lifted, China could posess key weapons that would aid them in a possible military action against Taiwan in a future date.
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I think you may have overlooked the fact that they already have that ability, the thing keeping them out of Taiwan is not the military capacity of Taiwan (which would certainly pack a punch but is hardly likely to be able to handle the shear volume of the mainlands material) but more that they would be fighting the US and its arsenal as well.
I am somewhat convinced that the US desire to keep the embargo in place has more to do with the US trying to maintain some control over European affairs than it is in protection of Taiwan.