So, I think China desperately needs to legitimize some form of opposition.
And look at the mess that Russia is; most Chinese don't want to follow that.
There is no question that Taiwan is a state in any political science definition of a state.
The greater concerns in China and Taiwan are on the political side, not on the economic side.
The reform of state industry, and most directly related to that, the banking sector, is enormously daunting.
I don't believe that economic and cultural interaction automatically brings greater peace and understanding, although it may help in that regard.
Now, I believe that war is never inevitable until it starts, but there has been a great proclivity in human history, and including in recent history, for war.
The Chinese government since 1979 has been very successful in economic development, and successful enough, simply by surviving, in the realm of political development.
A war in the Taiwan Strait would destroy China's international relations overnight. It would destroy Chinese - Japanese relations, not to mention Chinese - American relations.