Technological advances in this scenario inherently favour China since it currently lags technologically. If some technology X gets adopted by both China and the US (and it would be since China is behind in legacy technologies, not novel ones), no matter the absolute gain to the US, the balance will shift in China's favour since it would always gain relatively (i.e., its absolute gain would always be greater).Of course, unforeseen revolutions in technology might change each side's available options, but they're called unforeseen for a reason.
And the impact of foreseeable technologies lowers China's threshold for conflict, since a combination of renewables + advanced nuclear power + electric transportation will mitigate and ultimately obviate China's need for oil, severely diminishing the impact of a far seas blockade.
The degree of sacrifice the US is willing to make for Taiwan is not a question. In fact, since your scenario begins with Taiwan declaring de jure independence, that's the out from this hopeless situation the US has dreamed of. It can claim that it has no obligation to protect Taiwan since it unilaterally changed the status quo and get out with some dignity.Everyone is aware of the priorities each side sees in Taiwan, but the degree of sacrifice that each side is willing to lay down for Taiwan is still a question.
As my electrification example showed, as time goes forward both China's naval strength increases and the degree to which blockades can harm it decreases. Broadening the conflict also carries grave risks for the US, since it would no longer just be about Taiwan but could expand to China's conquest of Japan and the SCS littoral states, even to taking US territories like Guam and Hawaii.Such a possibility of course will sought to be mitigated by China seeking to build up a powerful navy and air force to be able to project power as well and either seek to protect its own shipping and in turn test US resolve in those areas of blockade, as well as to further integrate itself with the world economy so that if a blockade on China does occur those other trading partners will vocally advocate for continued freedom of navigation of trade and commerce and energy and isolate the US and its partners, and of course eurasian economic and energy integration to complicate the US ability to dominate sea lanes.
Guess again.My guess is that the US would have to call China's bluff on that one