As you can see, China is nothing but happy about this, as they are watching two potential enemies erode themselves and testing their strength. Lots of lessons will be learnt on the handling of this crisis and I would not say that Europe and Democracies are playing a great role in terms of intimidation, yet at least is managing to stay reasonably united.
China is observing the situation and predicting what west will do if they try to occupy Taiwan. But i do not think china would do that. Taiwan is far more superior than Ukraine over technology and Taiwan is far more important for USA than Ukraine. On the other hand china can not allow Russia to lose this war because this will give USA an unchallenged power over the world and they will get back their images they lost in afghan war.