I don't know who's "that lady" from Chinese embassy? ? does she even exist? is your story for real?
every sopker person represents Chinese foreign ministry、Taiwan Affairs Office, has referred taiwan as taiwan during their press conferences, on their press reports, no one uses Chinese Taipei.....
the title Chinese Taipei only being used during the Olympic games and both AECP, OECD meetings, because both China and taiwan are the members of the organizations.
frankly no one cares about what they call themselves, officially they are not a sovereignt country full stop, signed by UN, USA,AUS,EU.............
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