1. Taiwan sounds like they are going to start the war
2. Taiwan is currently pushing for independence indirectly and trying (provocate) to make Beijing start a war and hamper the 2008 Olympics Games
3. Taiwan knows it will fail any attempt for a bid for a UN seat regardless of whether its under the name of "Republic of China" or "Taiwan"
4. Taiwan knows that if China pushes the UN to officially recognise Taiwan as part of the People's Republic of China the chances of success is extremely high, given the vast majority of UN members in support of Beijing, with the exception of the US, Japan, and Taiwan's remaining 22 allies (inc. the Vatican).
5. The US is less likely to veto such a resolution, mostly abstain (given China's side of support of the wars on Afghanistan and Iraq by abstaining).LASTLY: Taiwan or the Republic of China is a old relic, irrelevant in the international community, there's no room for it to be independent.
I think President Hu Jintao and his administration is smart to use diplomacy and economic leverage to bring Taiwan in its fold, without using direct military threat. The strategy is working good, as preparation for the Olympics and its economic growth should prosper.
