If the current leadership shows weak response then I don't see why Xi should stay as President for another term at all period. What's his rationale for seeking unprecedented 3rd term and doing away with the previous rules set in place by Deng if he (Xi) couldn't even bring clarity, forcefulness to the core issue of China with respect to Taiwan.
If the main thrust of his argument for a 3rd term is the managing of the economy, the volatility of the current world order, stability etc.. there are, as am sure other capable leader(s) that can fill that role. Unless, the main argument he's making that the other candidates are all lousy and have been left wanting because if that's the case, then that's just a huge negative and an indictment to the CPC leadership system as well as training.
Perhaps the other reason is that there are a lot of corrupt officials and other vested interest groups (merchants a.k.a. Businesspeople) that simply don't want to shake the apple cart or money tree. Meaning, that the current trade exchange between U.S./EU are far more important to be lost just for Barbie Pelosi. The price isn't worth the cost. But as
@zhangjim passionately expressed, if the government doesn't take action now, when? And how many more "warnings" can and will the CPC give for their words to have any weight? Otherwise, we ought to look forward for more Pelosi type visits from both American political parties and even Europeans down the road. I am also a little suspicious that there are influential merchants in the CPC that just don't want to upset their business expansions in EU and America. To some, if losing Taiwan means $$$ to their coffers that's a fine trade they're probably willing to make.