China & Taiwan Sign Historic Trade Pact

Beijing, China,

China & Taiwan set aside decades of hostilities Tuesday, Nov. 4th and agreed to drastically expand flights and allow shipping links across the Taiwan Strait - a potential hotspot that has long threatened to become a war zone.

 

The historic deal highlighted the dramatic improvement in relations in the past half year between the rivals that split amid a bloody civil war in 1949.  They agreed Tuesday to hold high-level talks every six months and focus on building closer financial ties in the next round of meetings.

 

Tuesday's agreement - which becomes effective in 40 days - more than tripled the number of weekly flights to 108.  It also allows planes to take off from a total of 21 cities.  Under the deal, cargo planes can also begin flying the route, with 60 allowed each month. 

 

Chiang Pin-kung, Taiwan envoy said the two sides would seek an agreement that allows banks to set up branches on each side.  They would also set up agencies that would help resolve trade disputes. 

 

The drastic warming in relations began after Taiwanese President Ma Ying-jeou was elected in March, pledging to ease military tensions and forge closer economic ties with China.  Ma's Nationalist Party has long supported eventual unification with China - a policy that has helped the new president win Beijing's trust.  But Ma has promised not to pursue unification talks or move the island toward independence.

Latest views

Marked as favourite