I thought the solution is simple: just put China in brackets after Taiwan (China) and you should be fine? And don’t list them as “country”, use region instead!
I think that's about right. It's just one of many cases in which you have to be careful with terminology in diplomatic relations. Other countries/regions that need to be named carefully include: Holy See, the former Yugoslav Republic of Macedonia, Côte d'Ivoire, Socialist People's Libyan Arab Jamahiriya (some of these examples are out of date). In some cases people in the country/region have a strong opinion; in other cases it's people in a different country/region that have a strong opinion. Unless you have a good reason for having your own opinion it's usually best to just go along with these things and save your time and energy for something more important.
