Yes China can control the narrative to some extent, and historically they did. For example all of outer Mongolia was ceded to Russia. If you check Taiwan's official claims, you will see that it's much bigger than the People's Republic of China today.
The CCP has a history of ceding land (that is strategically not too valuable) in order to setup peace. I'm guessing that the military significance is the biggest reason why they're not giving up Taiwan.
> The CCP has a history of ceding land (that is strategically not too valuable) in order to setup peace.
This doesn't explain their border differences with India though. For all I can understand only a small part of the western border seems of strategic importance.
This article by the Asia Research Institute (set up by Kishore Mahbubani) has some background on the diplomatic history of this issue: https://ari.nus.edu.sg/app-essay-kanti-bajpai
Access to the water. The border China would like to control would put the watershed from glaciers on China’s side.
Per capita basis Taiwan is much better, but overall PRC is a lot more stronger.
> So many, that if the CCP lets Taiwan go, many people will revolt.
CCP has the gift of being able to control the narrative though, can't they make it seem like a win-win situation for them by doing it as some grand gesture and peace through largesse of their heart.
> Geographically, Taiwan is a military significant piece of land. The US can set up base there and blockade all China's naval traffic.
While I can see the importance of Taiwan as an opening between Japan and Philippines. Can't an enemy power use Japan, SK and Philippines to still blockade from Pacific.
Also, friendly relations with an independent Taiwan might mean it remains in PRC's sphere of influence