China, Taiwan sign deals worth US$5.6b
Posted: 30 May 2009 0305 hrs

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BEIJING : A Chinese local authority has signed contracts with Taiwan companies worth 38.3 billion yuan (5.6 billion dollars), state media reported Friday, as ties between the two rivals continue to thaw.

The southwest Chinese municipality of Chongqing signed the agreements Thursday at the start of the Chongqing-Taiwan Week, the China News Service reported on its website.

The deals covered a variety of industries, from high-tech manufacturing to agriculture and real estate, according to the report.

They are the latest sign of warming relations between the two sides after the China-friendly administration of Ma Ying-jeou assumed power in Taiwan last year.

The island has proposed a wide-ranging trade agreement with Beijing to encourage freer cross-strait flow of goods and personnel and to help Taipei tackle the global financial crisis.

Taiwan and China split in 1949 at the end of a civil war. Beijing still regards the island as part of its territory awaiting reunification, by force if necessary.

Ties worsened significantly under Ma's predecessor Chen Shui-bian, who angered China during his eight years in office with what officials in Beijing perceived as provocative pro-independence remarks.

But since Ma took office on May 20 last year, relations have warmed, with the two sides signing agreements that have led to regular direct flights, increased investment opportunities and a boost in tourist arrivals.

- AFP /ls