Good points, but again I am looking at it way outside of the norm here. I think it would allow China to show some military power, put their "global power" hat on and allow us to get a good idea on our relations with China, also again allowing us to check out their capability.
But I would agree it will probably not ever happend.
China isn't really in to the "global power" game, as you put it.They might have border disputes, but they tend to keep their military within their borders or not far from it. I'd say the most provocative stuff they've done with their military has been the recent moves by their Navy in the South China Sea, trying to exert their influence in an oil-rich area claimed by many nations.
As long as the Taliban(s) aren't messing with China, I think they'll stay out of the area. Pakistan is a bigger threat to India because the people destabilizing Pakistan are fundamentalist militant nutjobs- they're the ones who've been fighting in Kashmir since they got back from beating the Soviets. If they took power in Pakistan, India would have a big reason to be worried. Have these groups ever threatened China? Not sure.
I think we're still supplying Taiwan. I remember last year the PLA getting pissed that the deal went through and they told us they would never call us again, or something like that.