1) I've often discussed this with Taiwanese co-workers as well as Chinese who live here and it has never felt like a taboo argument.
2) Only if people ask me about it, or if I ear/read something completely wrong.
3) In nearly every discussion about micro/macro economics and political systems, there are usually 2 sides of the coin (sometimes more, like a cube-coin or whatever) and the "right" one is always based on personal views and interests rather than clear facts. Occasionally there will be someone who supports system X because he doesn't know all the facts*, and a discussion with that kind of person can be very very important, in order to give him/her a chance to make corrections. In general, an argument shouldn't necessarily be about enforcing your point of view and making the other person change his/her mind. Explaining your train of thought and giving the reasons why you believe in a certain thing is the start, and if the other person thinks your point of view is better then he/she gets the chance to change.
- = back in the old country I often mentioned the fact that Venezuela leaning towards socialism was a mistake for them, while Chile aiming for a more capitalistic/free market driven society was the way to go. Many people told me:"No! Look at Cuba! Their hospitals! Socialism in South America is clearly the way to go!". Eh.