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The agreements mark the latest sign of warming ties between the former Cold War adversaries under the year-old administration of Taiwan President Ma Ying-jeou, who ran for office promising to improve the economy through closer ties with the mainland.
The centerpiece of the latest round of cross-strait negotiations, the third since Ma took office, is an agreement setting up a regulatory framework for financial services firms on both sides of the Taiwan Strait to invest and do business in each others’ markets, according to a statement issued by Taiwan’s negotiator, the semi-official Straits Exchange Foundation.
The two sides also agreed to gradually establish a clearing system between the Taiwan dollar and China’s currency, the yuan, and to set up scheduled flights across the Taiwan Strait, replacing the current system of chartered flights.
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