It would be beneficial to both PRC and ROC to avoid a war the scale of which will either end in PRC defeat and subsequent embarrassment (which would be far worse than losing some ground in economic terms as a very temporary situation) or result in the successful invasion and capture of Taiwan (I say invasion because pretty much everyone will see it as such due to Taiwan not wanting to be part of PRC). CPC has survived far worse.
Even losing a large chunk of short term profits (until Trumps decisions are reversed after so-called superior democratic elections and limited time in office) is far more preferable than going into war as an aggressor. Hardly anyone in the world will be on China's side and will not consider trade war to be justification for violent reactions even if it is! This would be a great way to lose the political favour PRC has been carefully and slowly gaining in the non-western world even if it were to win Taiwan. The "we're the best F the rest" attitude imperial China had in the past won't do it much good in this century unless CPC is prepared to supply Russian levels of well strategised propaganda... how successful international Chinese propaganda will work on the western world is questionable at best (Russians are using the "we're your white christian brothers also against immigrants and liberal policies" to decent success at least on the low end of the intellectual spectrum). Slowly but surely showing everyone the benefits of non-conformity to Washington's rules is a superior path.
I don't think you understand what this trade war is all about.
It won't be some economic losses.
Trump and his team want to structural change to China system,. thats why they started this trade war. Its like a blackmail. They won't accept China current economic concessions.
if it does inflict maximum damages, and causing political instability, then CPC will have nothing to lose and everything to gain by retake taiwan.
Again, let me repeat, this is last resort, CPC will wait for economic crisis and political instability then they will strike... do you think they still mind being called aggressor or worrying about their reputation at that point when their survival is at stake. Come one now.
