China - Taiwan

Trade talks underway between former rivals

Article published on the 2010-01-26 Latest update 2010-01-26 11:38 TU

Taiwan president wants to boost trade with China
(Photo: Reuters)

Experts from China and Taiwan have opened the first round of talks aimed at drawing up a major trade pact between the one-time rivals. The state Xinhua news agency reports that the one-day talks will lay the groundwork for for higher-level negotiations before the end of June.

Tuesday's meeting comes amid improving ties between the two countries. Taiwan's President Ma Ying-jeou took office two years ago on a pledge to increase trade relations with Beijing as a way of boosting the island's faltering economy.

Talks are expected to focus on procedural issues towards signing a deal, known as the Economic Cooperation Framework Agreement, ECFA, The government in Taipei says the deal could boost growth and unemployment on the self-ruled island.

But the opposition Democratic Progressive Party fears it would increase Taiwan's reliance on China and threaten 1.6 million jobs.

Taiwan and China have been governed separately since the end of a civil war in 1949, but Beijing still considers the island as part of its terroritory and has vowed to reclaim it, by force if necessary.

Since Taipei eased an investment ban in the early 1990s, local Taiwanese businesses have channelled about 150 billion US dollars into China.