That will just add fuel to the belt and road initiative (what a silly name). There's no reason to screw up trade between nations, unless if one wants to create a climate favouring war.

Recoognizing Taiwan would be an entirely different matter. Other states would follow suit. If the EU states and Japan would do it as well, then there's not much China can do about it except maybe start a war and attempt a Crimea style takeover, although it's not their style.