You are being naive if you think China’s response will be limited to merely sinking their navies if NATO dares to get involved in Taiwan.
China can be magnanimous, but it also has a long memory, and as far as I can recall, not a single member of the original 8 nations army ever formally apologised to China nor has China ever actually formally forgiven them for their crimes against the Chinese people. For them to come again to attack China would be far to much like an attempted re-enactment for China’s liking, so the retaliation will not be remotely as light as just the destruction of their expeditionary forces. China will deploy combat forces directly to the European theatre alongside the Russians and steamroll Europe. The French will surrender rather than use their nukes, and the British will have their nukes remotely disabled by the Americans and/or have all their SSBNs sunk by American SSNs if they don’t stand down, since any nuclear launch by a NATO state against Russia or China will inevitably result in full global nuclear MAD, and America doesn’t want to die for Europe.
America will retreat to CONUS and maybe comfort itself by annexing Canada and Latin America, while China and Russia lock down the resources of the Eurasian world island and quarantine America to the Americas. I think that’s a position both sides can settle for, and it will be a long Cold War of economic and technological isolation for America while China and Russia rebuild the rest of the world into a better and fairer place than it is today.