China reaction is a bit like a billionaire burning his money in protest to stock exchange turning against him.

Destruction of resources they will have to spend more money to replace at a time the people and economy need support. 

Dunno if ramping up arms factories has been a good way of injecting capital into a faltering economy. 

For fishing fleets of Taiwan its a disaster as they have to stay in port to avoid potential conflicts and hostage taking. China has been responsible for violent action against fishing boats in Philippine and Vietnam waters it claims. CCP oddly enough has militarized fishing boats a kind of seaborne territorial guard.

Philippines backs Vietnam after China sinks fishing boat
The Philippines has expressed solidarity with Vietnam after Hanoi protested what it says was the ramming and sinking of a Vietnamese fishing boat by a Chinese coast guard ship in the disputed South China Sea
https://abcnews.go.com/International/wireStory/philippines-backs-vietnam-china-sinks-fishing-boat-70037606

From a strategic point of view we need to diversify our export trade.
Much like our vulnerability leading up to Britain joining EU.

We have too many economic eggs in one market.