A Cabinet spokesman (Johnny Chiang) has since clarified that if the US wants to help in that case, Taiwan would not refuse, and Taiwan will continue to seek advanced weaponry from the US.
Even with that, it's still a bizarre statement. It seems to validate the Chinese view that Taiwan is a part of its sovereign territory, and that the whole issue over its governance is indeed an internal one that no other country should be involved in. I fully believe that Taiwan should form better relations with China, and that the most likely outcome is either China collapsing under its own issues or a peaceful unification under terms similar to Hong Kong's. Either way, it is better for Taiwan to not be a target.
However, I hope the Taiwanese government has somehow run this idea by the US government. So much of the tension between the US and China (though by no means all of it) is based around the US security guarantee of Taiwan. If that is to be considered obsolete, we should know about it.