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You are approaching this from the perspective of a rational peaceful person from the west, where usually the economy is number one in everything.
Xi has achieved unrivaled rule over the party. He has successfully established a police state that ensures that any domestic dissent is immediately crushed with brutal efficiency. He has subjugated the provinces that dared to think about self rule and cultural differences, and is in the process of ethnic cleansing without any significant opposition or consequences. He has gained colonial influence all over Africa through economic means. He has taken over Hong Kong. He has significantly modernized and expanded the military, including nuclear weapons. He had made China into a global economic superpower, which other countries, including rivals, depend on for a significant amount of manufactured goods and resources.
So what is left for him? Surely he is not a man who can be content with what he has.
The obvious next step is to make China into a military superpower. For that you need to exert power abroad. What better place to begin with than that small island just off your coast that has been a challenge to Chinese supremacy for decades?
Of course, Taiwan is kind of protected by the US, the dominant superpower of the time. But they are struggling, looking weak. If China manages to take Taiwan, they will not only have removed that thorn in their side, they will also have punched the biggest, meanest kid on the block on the nose and gotten away with it.
Keep in mind that China is struggling as well. Their debt problems are several times worse than the US, so they could suffer a major recession within the next few years if a significant disruption like war happens.