A few ways of peacefully resolving Taiwan-China relations:
- China could allow Taiwan sovereign status in exchange for its vote in international organizations. This is not unprecedentent: the Soviet Union refrained from incorporating some Eastern European countries in exchange for their votes against Western countries.
- Make Taiwan a safe haven for Chinese money, legal as well as illegal. A no questions asked policy regarding the origin of funds would attract enough money from mainland Chinese businessmen and corrupt bureaucrats to assure that the rich and powerful, for fear of losing their money, would never countenance aggression against Taiwan.
- China could buy simply buy Taiwan. They just spent about 40 billion USD on the Olympics, so surely they can give each Taiwanese (about 23 million) one million USD as a payoff to become part of China. My guess is most Taiwanese would accept the offer in exchange for giving up their sovereignty. Unfortunately Beijing would never agree to such a resolution because Xijiang, Tibet, Hong Kong and just about every oil rich Chinese province would threaten to declare independence if it were not awarded large amounts of money.