Taiwan will ease restrictions on investments from mainland China, in a move that is likely to see significant new money flowing into tech companies on the island.
According to the Taiwanese state-run Central News Agency, Chinese companies will be allowed to own up to 10 per cent of tech manufacturing companies. They will also be allowed to buy up to 49 per cent of subsidiaries operated by Taiwanese high-tech firms.
Taiwan's deputy economic minister Lin Sheng-chung told AFP the deal would be announced "in the next few days."
The move follows a visit from China by Chen Yunlin, president of the Association for Relations Across the Taiwan Straits (ARATS) .
Taiwan began to allow Chinese companies to invest in some sectors of its vibrant economy in June 2009. By the end of 2010, Chinese investment in Taiwan amounted to $130 million,
This pales into insignificance compared to the estimated $150 billion invested by Taiwanese companies in mainland China, mainly in manufacturing plants.
Taiwan has governed itself since the end of the civil war of 1949, although China refuses to accept Taiwanese independence. Cooperation between he two entities has grown steadily, however, since the election of Beijing-friendly Ma Ying-jeou as Taiwanese President in 2008.