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I have seen the AI colonize it once, though they were a large kingdom mostly at peace when they finally got around to it.
Or just Accept that near the end game, the AI will not attack your location if you have a stronger army nearby or you have one of your army's threatening one of it's territories elsewhere. Similarly if another AI has an army near by, the enemy will not attack an undefended land.
So I think Taiwan is not unique. It just so happen that there are other threats that will hinder the AI from stretching itself thin.