China has a long-standing desire to rule Taiwan that goes beyond reason or it’s own interests. Perhaps the one thing I learned in China was how very real the concept of “face” is, and how that affects China’s foreign policy decisions in ways that make it seem irrational to us. China’s national mythology, in my experience, is something like this:
“At one time, China was the greatest and most refined civilization on Earth. Then some foreigners came and used brute force to humiliate China, causing the once-great nation to fall apart. The Communist party, in the tradition of China’s great emperors, re-united China and are restoring it to it’s former glory. Once Taiwan returns to the motherland, China will have regained it’s former territory, reversed the “century of humiliation” and can hold it’s head up high as it takes it’s rightful place in the world.”
Unfortunately, Taiwan become such an important symbol in this mythology that the very legitimacy of the current regime relies on their ability to make people think Taiwan is coming back. It’s the keystone, the final challenge, the symbol of victory. To give up on it would call into question everything about the party’s strength and purpose, and they do not feel like they are strong enough at this point to stand up to that.
Taiwan is also a useful rallying point. Whenever people start asking too many questions or getting too critical, it’s always easy to bring up Taiwan, whip up a bit of fervor, and get people excited again about the Communist party. They’ve done this enough that it’s become very real to the people. My students would get starry-eyed and tearful when they’d talk about Taiwan. Even if the party wanted to make Taiwan less important they couldn’t. It’s got a life of it’s own now.
Of course it’d be insane for China to make a move now. Things are going to good. The real question is what will they do if things go bad? If the Communist party feels like their rule is seriously threatened (say, by an economic downturn) they be scrambling for legitimacy and Taiwan might be the way to do it. In any case, if things were that bad they might think they have nothing left to lose and might as well try it.
Meanwhile, Taiwan could probably cool things down a bit by saying the right words and giving what China views as proper deference and respect. But the big question is, why should they? Why should they have to play nice-nice with China’s ego? Meanwhile, America’s ambiguous position doesn’t help much, since it makes Taiwan feel protected enough to make provocative moves.