It reinforces the frame that Schock is too inexperienced to be elected to Congress. Why should voters trust a 26 year old who thinks the way to place pressure on China is to arm Taiwan with nukes? What would the U.S gain from such a move? Run a cost benefits analysis and find a reason for the U.S to alienate China.
No sh
it. It's extremely stupid policy because it antagonizes China, not because it "risks a major rift with the world's fastest growing economy". It merely risks a rift with the government of that nation's economy.
This hardly would provoke China into a nuclear confrontation, especially when you understand that no one in China would seriously consider acquiring US nukes. The KMT is looking likely to run away with the Presidential Election in 2008; Ma is leading every poll by quite a lot. The idea of China starting nuclear war over arms sales is ridiculous. No one in power is willing to risk the inevitable full scale war that would occur, nor are the willing to risk the economic upheaval nuclear or even conventional war would cause to their economy.
Schock merely was making a (extremely) stupid off the cuff comment; one that he probably believes, but never should've said during a campaign. No worse than Obama's comment on Pakistan.
And to ask a question of the article, who the hell would buy that much US currency right now. China would certainly lose vast amounts of money if they made such a move.