The Chinese people are not known for this behavior, thankfully. But who are we to judge their logic. The fa ade that Beijing is displaying right now is not the only strategy left for its leaders to remain a regional power. The question is not whether China will respond militarily. Taiwan's issue of sovereignty was highlighted when an Asian country which maintains economic and trade relations with Taipei refused to issue President Lee a visa this spring.
Sovereignty is a prelude to independence.
Lee's declaration forces the issue of recognition while China is weak. A military response by Beijing without the Seventh Fleet sailing in the Strait of Taiwan is a big factor in that calculation. China may wait out Lee who has received a cool response from other nations. For the next eight months, however, Lee is still the President of Taiwan and still calls the shots. China may mask its response to Taiwan's gambit via China's founding anniversary later this year or embark on another type of action.