September 17, 2010 (Chinavestor) The China Banking Regulatory Commission has granted approval to four Taiwan-based banks to set up branches on the mainland in another sign of warming relations between the two countries. The announcement comes on the heels of the two countries recently inking a landmark trade agreement.
The China Banking Regulatory Commission said the Land Bank of Taiwan and First Commercial Bank were given approval to set up branches in Shanghai, while Taiwan Cooperative Bank and Chang Hwa Bank were permitted to open in nearby Suzhou and Kunshan respectively, according to the Associated Press.
Taiwan-based companies have been active investors on the mainland and several own production facilities there, but China to this point has not allowed Taiwanese banks to set up shop on the mainland.
The two countries have had a contentious relationship since they severed ties in 1949 and China has gone so far as to say it would use force to bring Taiwan under its domain, but relations between the two nations have improved considerably over the past two years.
Taiwan's Financial Supervisory Consumers said three other Taiwanese banks are still awaiting China's approval to set up branches, the AP reported.