I respect and agree largely with what you are saying....

I respect and agree largely with what you are saying. However...

To play devil's advocate...

China makes decisions all the time that are at the expense of its economy. Is there a chance that they would choose their belief in sovereign rights over their economy?

It may come at a huge cost and heck they may even lose, but they could see those chances as worth the risk. But experts say if China invaded Taiwan the war would be won by China quite swiftly. Of course, it could also develop into a multi-national campaign involving all sorts of countries and allies from both sides of the coin. This would ultimately be the sum of all fears re Taiwan and win or lose, Vmoto would suffer.
There is always the possibility with China.

On the flip side, I believe that Taiwan knows and understands the threat, and they will likely work with China politically, giving up some trade/political ground to keep China at bay, or at least reduce the threat of invasion. A little research shows that the threat of Chinese invasion and dealings with China are forefront of the country's election debates and the people of Taiwan are aware of the threat. They will likely vote for leaders who can reduce this threat.

All in my opinion.