i have been studying IR every day for the past two years and i can tell you a couple of new jet fighters will not change the balance of power there. whenever Taiwan acquires something new, it will not take long for the Mainland to come up with a way or a weapon to counter it. balance of power aint all about weapons, otherwise Germany would have crushed Soviet Union back in 41 (or was it 42 i forgot). the Mainland has way more of everything at its disposal than Taiwan does. in the end the Mainland is gonna benefit from making all their weapons because it builds a good industrial base and stimulates technology and economy. and Taiwan will be screwed cuz they are just spending money.
selling weapons have always been a political gesture. and right now it just aint time for obama to make this political gesture. maybe in a few years he will but not now unless he thinks he needs more of those useless political stunts to boost his own personal ego.
pla101prc makes an excellent point. Too often analysts get caught up in the balance sheets of countries at one point in time, not the
potential power. Many nations have ramped up their arms productively to amazing scales in just a few years, USA in 1941, the USSR in 1941, Germany in 1944 (yes, Germany only went to a full war footing that late and was still INCREASING production of arms during the bombing raids), and Japan in World War II. Hell you can go back to many countries throughout history who ramped up their war machines and threw everything they had when the chips were down, my favorite being Rome's resistance to Hannibal's repeated victories against large Roman armies. Rome resisted with everything they could, tapping previously un-used labor forces like slaves to fight.
China's economy is $4.3 trillion, 12x that of Taiwan's $383 billion. And China has FAR more industrial might to pump out hardware as 49% of their already larger economy is based on industry vs 28% of Taiwan's. It would be a big mistake to think that only the planes and ships we see in service today would fight in a future war. If China really commits itself to total, non-nuclear war, it can draw on a labor and industrial base unrivaled in history.