It is already in Taiwan's waters. China is trying to provoke Taiwan into a response so that China has an excuse to attack. You will NOT see another "Pueblo"-type incident with the Chinese. Watch what happens when Taiwan tries to board the "survelliance" vessel. LOL.
That maybe what Taiwan see's as its waters (176km is the current distance of the ship from shore), but internationally recognized distance is 12 miles per the United Nations Convention on the Law of the Sea.