Part of the politics is that the Republic of China still officially claims to be the legitimate government of the whole of China. So it really is recognize one or the other. Politics within Taiwan have so far prevented declaration of Taiwanese independence from China in any form, and the One-China policy that everybody agrees to prevents recognition of the PRC and establishment of two-state relationships. Until either of these political realities change, the formal fiction of unrecognized statehood is unlikely to change.