I think that China saw the shitshow that is Ukraine, saw that even the US is breaking its teeth on Iran, and decided that a direct attack on Taiwan either will fail or leave them with an utterly destroyed Taiwan after an exhaustive battle

Either way, the cost of a Taiwan invasion attempt and all the fallout that comes with it would just make it a really bad move.

Next up: diplomacy

Why they would wan to expand is beyone me. Especially with hon kong. Honestly if they improve enough you eventually might have taiwan wanting to become a part but they have to just be chill and benefit from their manufacturing position.