Protesters in Taiwan's capital scuffled with police on June 3 and threw chairs at an official building where discussions were under way on a proposal for a referendum on a planned trade pact with China. The administration of President Ma Ying-jeou has been pushing for the pact, known as the Economic Cooperation Framework Agreement, saying it will boost growth and employment.

Civil aviation regulators from Taiwan and China have agreed to add 28 direct passenger flights a week between Taipei's Songshan Airport and Shanghai's Hongqiao International Airport in order to meet increasing demand for cross-straits flights, according to Taiwan's Civil Aeronautics Administration. The new flights will begin operating before June 14.

President Ma Ying-jeou argued Taiwan had no option but to sign the pact with China. Tsai Ing-wen, leader of the opposition DPP, insisted Taiwan would do better to negotiate with China slowly through existing WTO structures. Tsai also accused Ma of upsetting the regional balance of power, alarming Japan and South Korea...

In an interview with AFP, Taiwan president Ma Ying-jeou said the framework agreement was just a first step, but that he was confident it would lead to deeper trade agreements with China and continue to lower tensions between the former enemies.

Taiwan and China will hold the second round of talks on a broad cross-strait trade agreement in Taipei on March 31 and April 1, to discuss which sectors will be among the first to enjoy favorable tax terms under the planned pact, according to Taiwan's semi-official Straits Exchange Foundation.

"Foreign firms have expressed a willingness to increase investment or make new investments in Taiwan" once the island signs the Economic Cooperation Framework Agreement with China to remove bilateral tariffs, Ma told reporters at a news briefing to promote the pact. He didn't make any forecasts about the potential value of such investments.

Taiwan's anti-China opposition has won all three legislative seats up for grabs in by-elections, giving it more clout to propose bills in parliament and further pressuring the Beijing-friendly ruling Nationalists.

Taiwan's main opposition Democratic Progressive Party has said the government has failed to attract large amount of Chinese investment to bolster the island's economy.

Beijing's top negotiator for Taiwan and his Taiwanese counterpart have signed a series of business accords, and said agreements on free trade and IP rights would be negotiated in talks slated for the first half of 2010. Critics fear that the move will eventually lead to unification with the Chinese mainland.

Taiwan Stock Exchange Chairman Schive Chi said Chinese companies may list on the island as early as 2010. "When the ECFA is signed with China next year, it's a good opportunity for Chinese firms to list in Taiwan and we aim for that to happen in the next year..."

Taiwan's economic minister Shih Yen-hsiang met his Chinese counterpart behind closed doors in Singapore Sunday to work out an agenda for bilateral talks on a proposed bilateral economic cooperation framework agreement (ECFA).

Taiwan Vice Premier Eric Chu has said a breakthrough in the negotiations with Beijing on cross-strait financial regulation was expected in a matter of days.

Taiwan President Ma Ying-jeou said on Monday the island has not considered allowing the island's LCD firms to make large panels on the mainland for now, saying it will only cautiously export its technology expertise to China.

President Ma Ying-jeou suddenly realized it needed to focus on matters closer to home.

Taiwan plans to sign an agreement with China in October that will allow some of the mainland's huge pool of liquidity to start flowing into the island's stockmarket, according to local media.

A fortnight after Typhoon Morakot first struck Taiwan on August 6 the storm continued to wreak havoc on the island. Morakot is also doing political damage.

Taiwan plans to allow local flat panel makers and chipmakers to invest their advanced process technologies in China, the Economic Daily said on Wednesday, in the latest indication of warming business ties on both sides.

The presidents of Taiwan and China exchanged direct messages Monday for the first time since the two sides split 60 years ago — the latest sign of their warming relations.

Taiwan hopes to sign an economic pact with China in 2010, Lai Shin-yuan, minister of the Mainland Affairs Council, said in Washington on Tuesday (July 14), according to a statement from the island's China policy-making agency.

Taiwan and China should cooperate on energy conservation and environmental protection, the Chairman of the island's ruling party said in a speech on July 11.

Taiwan will open up 64 sectors in manufacturing, 25 in services and 11 public infrastructure projects from today, the Ministry of Economics Affairs told a briefing in Taipei. Foundries and the liquid-crystal-display and telecommunications industries will remain closed, the ministry said.

The majority of people in Taiwan view China as nothing more than a business partner, while most people in China see Taiwan as "kin, " according to the results of a survey released Tuesday.

Pioneering Taiwan industry leader Morris Chang says better focus is needed. "I think that the Chinese side is still intent on building their own integrated supply chain. They are assisting their design companies and their foundries. It's such a shortsighted policy..."

Taiwan's stock market has a rare chance to transform itself into Asia's Nasdaq, as the island improves its relationship with China, while capital markets in the US and Europe are largely frozen because of the financial crisis, says the head of private equity group H&Q Asia Pacific.

Investors in Taiwan equities are reaping the benefits of the island's improving relationship with China, which has powered the benchmark Taiex index to a 39% rise since the beginning of 2009.

International banks such as Citigroup and Royal Bank of Scotland will see new competition in China as Taiwanese banks enter the market, leveraging their cultural ties and links to local firms. The Taiwanese could quickly reap profits in their giant neighbor this year, helping underpin their battered shares over the coming months, and at the expense of bigger Western rivals which have troubles of their own at home.

When China offered 30 years ago to set up transport links with Taiwan, the island's government said no. As China's economy grew, Taiwan wavered. On December 15 ships, aircraft and mail at last began routine daily crossings directly across the Taiwan Strait. A jubilant Chinese official declared it "the final part of our economic circle with Taiwan."