China didn’t increase defense budget accordingly and for now still sticking to the same gdp percentage (around 1.5%) so the spiral hasn’t started yet (surprisingly).
Also China is always aggressive to DPP which isn’t something new and US government well understood the reason and used to assure China they will deter DPP’s independence agenda (if you’re familiar with that history. also https://www.foreignaffairs.com/taiwan/taiwan-china-true-sour...). Unfortunately there isn’t much political room now in US for that kind of assurance.
Also China is always aggressive to DPP which isn’t something new and US government well understood the reason and used to assure China they will deter DPP’s independence agenda (if you’re familiar with that history. also https://www.foreignaffairs.com/taiwan/taiwan-china-true-sour...). Unfortunately there isn’t much political room now in US for that kind of assurance.