China in Pursuit

http://the-diplomat.com/china-power/2011/03/08/why-taiwan-matters/

I often find myself annoyed by the United States' arrogance in international relations. This country seems to believe that it is above the basic concept of sovereignty and the world is our personal Risk board. However, there is one issue that seems to turn the United States into a cornucopia of contradictions--Taiwan. We claim to be defenders of democracy, we love freedom and fireworks, and on top of it all we decry Communism as evil incarnate. Yet, we flat out refuse to acknowledge Taiwan as a sovereign nation, even though it would mean politically fortifying one of Asia's most successful democracies. Why is this? China--the other big bully. Based on the above article (read it!) we can determine that an annexation of Taiwan would primarily provide China with strategic military advantages, but does China honestly need a naval base the size of a small country, literally? The PLA has already proved itself to be a formidable enemy, and with an apparent disregard for loss of human life, the Chinese have the potential to sustain military mobilization for virtually forever. I'm no expert, but I just can't understand why China feels it is so necessary to acquire Taiwan. My best guess-- they don't want to lose face. Again.