China, Taiwan Inks Historic Pact

November 4, 2008 11:32 a.m. EST

Taipei, Taiwan (AHN) - Communist China and Taiwan on Tuesday signed a historic deal to improve cooperation on direct trade and transportation, setting aside decades of animosity.

The deal, marks an unprecedented improvement in the relations of the two rivals which split during the bloody civil war in 1949, and focused on improving trade links across the Taiwan Straits, that has long been considered a potential flashpoint between the two nations.

Both sides have also agreed to continue high-level dialogs every two months to further foster closer financial ties.

Chinese envoy Chen Yunlin shook the hands of his Taiwanese counterpart, Chiang Pin-kung after signing the landmark agreements which will see the number of weekly flights and cargo shipments across the 100-mile Taiwan Straits to triple.

The agreements will also increase cooperation on postal service and food safety, it was reported.

Since splitting from China, Taiwan has banned all direct flights and shipping from the mainland on suspicion its bombers and warships would be disguised as civilian vessels and attack the island.

In July, the two sides met in Beijing, China which started the relaxation of relations between the two rivals and inked a confidence-building deal that allows 36 weekly flights from five Chinese cities.