From what I can tell both sides claim the territory of the other so that is what makes negotiation so much difficult.
My guess is in the end China will accept Taiwan as it is and Taiwan will accept the PRC as legit. And of course they both win because then it drives out US influence and increases trade.
China is not stupid they know the Taiwan situation is only harming otherwise flawless trade. China does not need Taiwan in order to continue growing rapidly.
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