One of the problems, as you know, is that the Chinese language is not as nuanced as others for dealing with the difference between state and country.
The most important thing that certainly the United States and other Asian and Pacific actors have done is to urge that whatever happens, however the dispute is resolved, that it be resolved peacefully.
There is no question that Taiwan is a state in any political science definition of a state.
The reform of state industry, and most directly related to that, the banking sector, is enormously daunting.
So, anything that avoids a conflict that could draw in, unhappily again, outside powers such as the United States or revisit, for example, Japan's interests in the Taiwan area would be the last thing that anyone would want.
You could argue that war is always an irrational act, and yet many states enter into military conflict out of rational calculation or national interest or the stability or longevity of their regime.