Taiwan opens office in Beijing

Taiwan set up its first government office in China yesterday, a strong sign of improved relations following decades of hostilities that saw little official contact while the two sides stood at the brink of war.

The opening of a Taiwan tourism office in Beijing follows two years of trade and transit talks that have eased suspicions while increasing the urgency of communication on travel-related issues.

Markets are likely to approve of Taiwan's liaison office, staffed by five Taiwan citizens, as more evidence of closer ties between the export-reliant island and economic powerhouse China.