1. Ok then, but how do we make him pay for all his other bullshit?
2. How the fuck do we keep him away from Taiwan without killing him?
1. You do not.
2. Well, in WW2, the US sold England all sorts of military hardware so we could defend the island. The same option could work for Taiwan as well; as an island nation, they have a defensive advantage. It would prevent them from becoming dependent on the presence of foreign soldiers (unlike the Afghanistan approach), but it would increase a military presence in their waters while the hardware is transported. Since this is purely a financial transaction, that military presence would not be provocative (though the Chinese government would certainly howl about it anyways) and passively act as a deterrence against an invasion. The new tech would complicate any military offensive against Taiwan, and Taiwan could be extended a similar deal as England as far as selling items on credit with interest rates they should easily afford.
Personally I prefer diplomacy, but if you are hellbent on a military solution, this one is viable and can help all sides avoid armed conflict.