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China, Taiwan May Sign Trade Accord

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China_flag1 June 23, 2010 (Chinavestor) China and Taiwan may sign a landmark trade agreement as early as next week, a sign that a contentious relationship between the world's largest country and its island neighbor may be warming.

The trade accord is designed to cut tariffs and boost Taiwan's relationship with the mainland, the top destination for Taiwanese exports. The two countries could make an announcement as early as Wednesday that includes a list of items that will be subject to lower tariffs.

The two sides are also trying to shorten the time needed for Taiwan banks to qualify for a license to conduct yuan business on the mainland, according to Bloomberg News. Taiwan has been a sovereign nation since 1949 though China has been adamant about its desire to control the island nation.



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