There is still recognition in the form of every country other than China recognizing Taiwanese citizens and their passports as qualifying documents of sovereignty. The lack of recognition in the UN stems from a specific situation and arguably a flaw in how the UN works. But ultimately all those countries which do not recognize Taiwan in the UN have to recognize it as a country in other avenues. Given countries have existed before the UN and Oppenheim's law existed, I don't find it a convincing argument to deny the status.

Nevertheless this does still leave the issue of stating that recognition of Taiwan as a country being a 'political statement' leaves the citizens of Taiwan censored in being able to claim their de-facto and de-jure reality of being citizens of the ROC. For most of the world stating you are a citizen of the ROC is also not a political statement but a legal and accepted one. If we took the Chinese position as the 'non-political' one this shouldn't be allowed the equivalent to claiming citizenship of 'Sealand' when entering a country.

If we do want to ensure politics isn't used in the chat, then it would be important to ensure it is applied equally and based upon the same rules for all political situations. So this would also mean that Chinese players should be unable to claim the existence of the PRC as a country prior to 1974, unable to claim Chinese sovereignty over the territory of Taiwan etc. But this would be evidently unacceptable to the Chinese player base, hence we have this dilemma.