How would a successful invasion of Taiwan affect China?

Since the end of the Chinese Civil War in 1949 the island nation of Taiwan, formerly a territory of Qing China before its loss to the Empire of Japan, has been independent. The PRC (People’s Republic of China) regards Taiwan as a province of China. In 2016 Taiwanese President Tsai Ing-wen broke with precedent by forcefully asserting Taiwanese independence. Around 60% of Taiwanese favour independence. President Xi Jinping of China countered by cutting off diplomatic relations. Xi has repeatedly asserted that Taiwan should be unified with China and has not ruled out the use of force.
Taking Taiwan would be a notch forward in Xi’s plans for reclaiming China’s place as the paramount power in Asia. At the zenith of the Qing Dynasty China composed 32% of the world’s GDP. Xi may also be motivated by a need for a territorial legacy; Xi has drawn upon the imagery of Mao Zedong. Zedong annexed Tibet; Xi may see taking Taiwan as a keystone territorial acquisition for China, eclipsing the return of Hong Kong in 1997 and Macau in 1999.
China capturing Taiwan would rapidly reorder power dynamics of the Asia-Pacific. Taiwanese GDP is nearly $1 trillion and it hosts TSMC, which makes around 90% of the world’s advanced chips. Chips are also a growth area; TSMC’s share price is up around 32% so far this year. A China controlled Taiwan would control shipping lines and access to the South China Sea. American allies in the region would be inclined to favour an ascendant Beijing for fear of matching Taiwan’s fate. After America under President Joe Biden pledged to defend Taiwan, a loss would decimate America’s global reputation as guardian of free democracies from dictatorial advances, the role it played in the Gulf War of the 1990s. Western nations would most likely line up to place sanctions on China but these would likely be ineffective. The first is that all out sanctions on Russia since the invasion of Ukraine have been an unmitigated failure. They were supposed to turn the Russian economy into a carcass yet the IMF projects Russia’s economy will be larger in 2028 than now. Attempting to dismantle the Chinese economy would also likely be debilitating to the world economy; China’s GDP is around $18 trillion compared to Russia’s $1.5 trillion. Western companies make vastly more profit from China than from Russia. Despite the complexity of an amphibious invasion the Chinese military is much stronger than the Taiwanese military; the Global Firepower military strength rankings ranks China as the world’s 3rd most powerful military compared to Taiwan at #24. A successful invasion of Taiwan would vault Xi to the edge of the Qing era zenith of the nation on the world stage.
