It's possible. I don't think it's at all inevitable, since the KMT OTL was able to reform after losing the mainland and China did experience significant economic growth (albeit growth that was overwhelmingly concentrated in the still-tiny cities) during the Nanjing decade, but you could certainly come up with a plausible TL where that's what happens.Without the Maoist reforms and purges, would it be possible for the warlords and other prewar internal powers to stay in place, ultimately limiting China's growth in the long run? I've heard part of the reason for the success of the PRC starting with Deng has been due to them being able to start from a more or less clean slate following Mao.
Either one is plausible. I suspect the US would prefer to deal with a democracy (provided, of course, that there was no danger of Communists winning), but the US will have much less leverage (still a lot, but not as much) over the TTL ROC than over Taiwan.Could KMT China become a democracy like modern Taiwan, or would it be more of an oligarchy?