Hypothetically say if China "lost" TW, whether be it through losing it by giving it up after succumbing to pressures of US nuclear blackmail and/or losing it in a kinetic fight etc.... then given history of WWII and US actions thereafter, its likely that TW would become a US base (not unlike Hawaii) for at least the next 70 to 100 years... esp if China suffered a kinetic loss in war, then its almost a foregone conclusion that US would mount short range nuclear missiles in TW aimmed at and against China to seal the deal of the nuclear blackmail and put China in a position where it won't be able to get its navy out to the Pacific, US would claim the SCS for itself, and put chokehold on Chinese trade unless China signed away Plaza Accord 2, 3, 4 and 5.Some sectors of the US establishment wants to bluff China on Taiwan with nuclear threat (you can tell that even some of the US members at SDF are clearly under that influence). Why? Because they know it's very difficult, and increasingly unlikely, for the US to prevail in a conventional military conflict over a Taiwan contingency. It's very difficult for them to accept this reality psychologically. They're wielding, explicitly or implicitly, the nuclear card to either scare or bargain with China from the position of that weakness.
China must make it abundantly clear that there is no equal position on Taiwan between China and the US. Taiwan is NOT a piece of territory that must be negotiated between the US and China. China will reunify Taiwan peacefully or militarily with conventional force. China does not threat Taiwan or anyone with nuclear weapons. But China will escalate to any level should any third-party initiate nuclear attack against China because of Taiwan or other reasons. And nuclear threat will NOT deter China from reunifying Taiwan, peacefully or otherwise. If there would be a Cuban Missile Crisis of sort, Taiwan to China would be much more than Cuba to the US, simply because Taiwan is Chinese territory. Taiwan is for China to lose.
Any preparation should be based on the above position. The US should not hold any delusion on such matter.
Stalemate/strategic ambiguity is one thing, but actually losing TW would spell the end of the Chinese rise/dream and recapitulate China back into being a colony enslaved by the West/US yet once again....
Given Chinese's advancements in nuclear parity with the US, I just don't see this realistically coming to play without a WWIII scenario, it would be incredibly naïve if America thinks it can force this on China and that this time around their homeland will be safe and untouched like during the previous two world wars.