China Mobile will invest in Taiwan. (Photo by China Photos/Getty Images)
China Mobile, the biggest mobile carrier in the world, announced today that it would purchase part of Taiwan's Far EasTone for $529 million. The deal was already the second announced today between a Chinese and Taiwan company.
China Mobile and Far EasTone also signed a historic agreement to work together on new business, something that is expected now that communication ties are expanding between Taiwan and China. Also today, Taiwan chip-maker United Microelectronics announced the purchase of China's He Jian Technology.
Since Taiwan's President Ma Ying-jeou took office in May 2008, ties between the two sides have improved significantly. The first regular direct flights between the two sides began in December, bringing in thousands of mainland tourists a day. This past weekend, China and Taiwan representatives met in Nanjing, China, to sign agreements on financial cooperation and investment, more direct flights, and cross-straight cooperation in criminal investigations.
The financial cooperation agreement allows banks to open branches in each other's territory and allow for the free flow of goods and services, the Wall Street Journal reported. Investment in China by Taiwanese companies totals more than $100 billion. Many Taiwan businesses say they are hurt by cross-straight trade restrictions.
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