At this point China is likely somewhat keeping the issue alive just to give US something to feed towards while China can work on strengthening the whole international system.I would argue that absent the Taiwan issue, that China would be far LESS prepared for US confrontation. It wasn't until the 1996 Taiwan Strait Crisis that China decisively pivoted. It's this singular core issue that has been the main impetus behind China's comprehensive military modernization and development. Without Taiwan, China would have focused almost entirely on the mainland. Instead, China has been literally forced into expanding its "security", not just military, envelope in all realms to counter what is obviously a containment strategy. I'm not saying they wouldn't have developed long-range missiles and plans to extend the kill zone to the 2nd island chain or that the Belt & Road and now evolving non-Western financial order would appear. What I'm saying is, it would have been a far lower priority and both the navy, air force, sanctionable technologies, sanctionable resources, etc, would have been no where near where they are today.
Everybody knows that the Anglo-Americans would enforce not just trade sanctions but military blockades of vulnerable resources and technologies. This has had an enormous impact on China's self-sufficiency in food, natural resources, technologies and dramatically accelerated China's evolution in these directions as a result. China is by far the world's largest market. Once they attain anything approaching self-sufficiency, they attain sovereign global pricing power and market power unrivaled by any potential economic bloc, even including a hypothetical economic bloc composed of the entire OECD combined.
So, this isn't just about military strength but also how it has affected China's comprehensive development in every area we can imagine. China's leadership would have never foreseen the current level of Anglo-American dysfunction without it rearing its head in the early days when China was 3 magnitudes weaker. Imagine what the Western alliance could do to China now if it weren't for Taiwan in the 1990s to counter the Chinese liberals who were totally dominant at that time.
I mean, going to 3% gdp spending will not hurt the economy, and I can pretty much guarantee that doubling the PLA's funding will buy a military that is so powerful that even the US militarists will just take a look at it and say any chances of invasion are hopeless. And then China can apply the Israel model when it comes to dealing with ROC at its own pace without fear of any US intervention in the civil war.
I think the most difficult work which China has cut out for it right now is to get the third world into shape. China's stated goals is to reinforce the post ww2 international order into a viable system of equals, rejecting America's attempt to create an US first "new order". There is no real reason to doubt that China is insincere about these goals.
To this end, major regional players such as India, Russia, France, Brazil, Iran, Saudi Arabia, and so on, must be set up as local "poles" that help curtail American influence. Of course, some will be more reluctant and some will more easily embrace their role, but building these "fortresses" against US is China's most arduous and important task.
Russia, which used to host many infantile disorders about "balancing" China against other countries and so on (as one can see in the theories of eurasianism), is now a case of mission accomplished.