Neutrality in politics doesn't refer to a Platonic ideal where the existence of a conflict doesn't affect you in any way. Neutrality is a pragmatic message: "I understand you two have a conflict, I'm not going to take it upon myself to solve it, but I'd like to operate here regardless".
One option is of course to say that nobody should be neutral in the conflict between China and Taiwan, but the obvious objection is that Taiwan does not want this. Taiwan's economic links with the mainland are enormous and it's absolutely routine for Taiwanese businesses to export to China or do business in China under Chinese regulations. (For example, you may be familiar with Foxconn, a Taiwanese company with over a million Chinese employees.)
I don't know why you're over-complicating this. The body that decided on that terminology didn't even invite Taiwan to participate. The terminology was chosen at the behest of China. That body was obviously not neutral.
Once again you're over-complicated this. The organization could have invited Taiwan to participate and asked them what they'd like to be called. That would certainly satisfy those questioning the organization's neutrality.
Allowing the PRC to decide what the lands they govern are called and allowing the ROC to decide that the lands they govern are called is _obviously_ more neutral than allowing either the PRC or the ROC to make the decision for both sides. Taking the PRC’s side (as that committee did) or the ROC’s side is basically the definition of “not neutral”.
China does need to be “satisfied” for it to be neutral.
One option is of course to say that nobody should be neutral in the conflict between China and Taiwan, but the obvious objection is that Taiwan does not want this. Taiwan's economic links with the mainland are enormous and it's absolutely routine for Taiwanese businesses to export to China or do business in China under Chinese regulations. (For example, you may be familiar with Foxconn, a Taiwanese company with over a million Chinese employees.)