Taiwan is diplomatically isolated. States wishing to do business with China cannot have relations with Taipei, which still claims to be the official government of the mainland as well as of Taiwan. Taipei has to conduct its overseas relations via trade delegations rather than embassies and cannot gain representation at the UN. States which recently severed relations were Saudi Arabia in 1991 and South Korea in 1992. Just before becoming South Africa's leader, Nelson Mandela also stated his intention to do so.
Relations with the USA have been difficult since Washington was forced to recognize China at the UN in 1972. Taiwan effectively lost its status as a US client state, and the US 6th Fleet was removed from the Taiwan Strait. US security guarantees to Taiwan have been ambiguous ever since.
China continues to recognize Taiwan only as a province of the mainland.