All the PLAN would have to do is keep the merchant ships from coming or going. They could do that with submarines, or just with an announcement. The subs wouldn't have to sink anything. Long range aviation wouldn't have to sink anything. The merchantmen wouldn't try it.
I don't know if Taiwan is self sufficient in food but I don't think they are self sufficient in oil. It would only be a matter of time and they would have to surrender. Also, no merchantmen going out means no money coming in.
All of the above predicated on the USN being out of the picture.
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