Rare Look At Taiwan’s Chien Hsiang Kamikaze Drone In Action
(www.thedrive.com)
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So long as Taiwan can slow or even halt China getting a foothold on the island, their chances of winning a war is drastically improved.
China can always 'win' going scorched earth but 2 main reasons why that's highly unlikely:
They lose all resources, manufacturing facilities and skilled personnel from Taiwan making it just a costly war
They send the message there is no point negotiating and no mercy given which means any future conflict, people will fight to the death knowing if they're going to die anyway, may as well kill as many Chinese as possible with them.
These kind of guided drones might be HIGHLY effective against ships like battleships and landing craft which combined with effective Anti-air would turn that island into a grave for China's ambitions.
The article mentions that the drones can´t sink ships but they can target parts of the ship, like their radar, making them vulnerable to other weapons, and you are quite right that Taiwan doesn´t need to win the war if there is a conflict with China, only make them pay a heavy price so that they think about it twice before embarking on any imperialist adventure, another given is that the US and Europe at least would impose sanctions on China and decouple their economies like they have done with Russia.
Sanctions mean shit really as look at most of the countries sanctioned by the West
If America REALLY wanted to hurt China to the point they may self implode again, use their navy to blockade the main sea route into China. They do that and the imports China heavily relies on gets cut off and they don't have the internal resources to cope with their population size.