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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: China, Taiwan hold talks on economic cooperation By GILLIAN WONG,Associated Press Writer AP - 2 hours 56 minutes ago BEIJING - Negotiators from China and Taiwan were expected to sign a financial cooperation pact Sunday amid efforts by Taiwan's president to improve relations with Beijing. ADVERTISEMENT The agreement would allow banks to open branches in each other's territory, according to Chiang Pin-kung, the Straits Exchange Foundation president and Taiwan's top envoy to the talks in the eastern Chinese city of Nanjing. The pact would represent a big stride in economic integration between the two rivals as it is expected to allow Chinese banks to enter the Taiwanese market and acquire shares of Taiwanese financial and manufacturing firms. Taiwanese officials have said they hope to limit the Chinese control of a local firm to 10-20 percent. The Taiwanese have long feared that China could gain control of its economy, but the current economic slowdown has forced the island to take bold market-opening measures. Taiwanese President Ma Ying-jeou is also pushing for an agreement to ease trade barriers, which he says is needed to keep Taiwan competitive. The Economic Cooperation Framework Agreement would permit the free flow of many goods, services and capital. In a concession to Taiwanese farmers, agricultural produce would be exempt. Taiwanese companies have invested more than $100 billion in the mainland and business leaders complain they are hurt by restrictions on finance and trade. Taiwan and the mainland split in 1949 and have no formal ties, but investment and indirect trade have flourished since Taiwan eased its ban on contacts with China in the 1990s. Chen Yunlin, head of Beijing's semiofficial Association for Relations Across the Taiwan Strait, said Sunday the two sides should strengthen cooperation to better cope with the global economic downturn, which has severely hit both economies. "The mainland will buy more products from Taiwan and send more tourists to the island, while encouraging more Taiwan enterprises to set up on the mainland to maintain stable development," Chen said. Other agreements due to be signed this weekend would increase the frequency of direct flights between the two sides and permit cooperation in criminal investigations, Chen said. Taiwan limits direct travel and shipping links for fear of domination by its giant neighbor. Beijing claims the democratic island as part of its territory and has threatened repeatedly to invade if it tries to make its de facto independence permanent or delays talks on uniting the two sides. They will also discuss an agreement that would allow mainland investment in Taiwan. Taiwanese officials say any investment agreement is likely to bar Chinese access to sectors deemed critical to the island's security. The talks are the third round of high-level negotiations between China and Taiwan since Ma took office last May. In the earlier rounds, they agreed to begin daily charter flights and direct sea and postal service and to increase the number of Chinese tourists visiting Taiwan. ___ Associated Press writer Annie Huang in Taipei contributed to this report. Email Story IM Story Printable View Blog This Recommend this article 0 users recommend Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy China set to spend $10B more of stimulus packageAP - 51 minutes ago Aus recession to last longer than first fearedAFP - 1 hour 37 minutes ago China, Taiwan hold talks on economic cooperationAP - 2 hours 56 minutes ago Australia's shops ring in 'manna from Kevin'AFP - Sunday, April 26 Related Articles: Business China set to spend $10B more of stimulus packageAP - 51 minutes ago Israel's Koor cuts Credit Suisse stake to 2.78 pctReuters - 55 minutes ago Qatar Islamic Bank unit starts sukuk fundReuters - 59 minutes ago Oman's Raysut Cement Co Q1 profit falls 34 pctReuters - 1 hour 19 minutes ago China, Taiwan in landmark financial services dealReuters - 1 hour 22 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Charred meat linked to pancreatic cancer risk Downturn hits Elton John, Paul McCartney 'Golden Girls' Beatrice Arthur, dead at 86 Albino buffalo a first for Kenya Toyota's Trulli on pole for Bahrain Grand Prix View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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