Beijing and Taipei Ignore Politics to Sign Trade Deal

China and Taiwan moved closer yesterday to ending six decades of hostilities, as they signed deals drastically expanding direct flights and allowing shipping links between the two countries.

The deal follows a dramatic thaw in relations over the last six months, since the election in Taiwan of Ma Ying-jeou as president. Taiwan broke away from China at the end of the civil war in 1949.

Beijing and Taipei have agreed to set aside contentious political issues to work on improving economic links - important to both at a time of worldwide gloom.

Thousands of protesters led by Taiwan's opposition Democratic People's party spent a night on the streets of Taipei, using loudspeakers to condemn the visit of Chen Yunlin - the most senior Chinese official to visit the island in 60 years - and accuse Ma of selling out to Beijing.

But yesterday Chen enjoyed a warmer welcome as he sipped champagne with his Taiwanese counterpart Chiang Pin-kung. The men posed for photographers holding a piece of calligraphy reading: "Peaceful negotiation creates a win-win situation."

This summer saw the first regular direct air links across the 110-mile Taiwan Strait since the civil war, and yesterday's agreement would triple the number of flights, which formerly went via Hong Kong.

Chiang said direct shipping links would shave 16 hours and up to 30% of costs off voyages that previously went via Hong Kong and would help Taiwan to become an Asian transport hub.

Andrew Yang, of the Chinese Council for Advanced Policy Studies thinktank in Taipei, said the deal was also a major advance on that symbolic change. "Now it's more substantial ... Hopefully, more robust cross-Straits economic ties will help to stabilize the economic situation."

But he added that it was too early to judge how Ma's slumping poll ratings would be affected by the agreement.

The deal also includes greater cooperation on food safety, enabling faster recalls of substandard products, and an agreement to hold talks every six months.