Taiwan plans to open up semi-official trade offices in six cities in China in the next two months, which authorities said Tuesday was a sign of closer economic links with the mainland.

The offices, to be established in major cities including Beijing and Shanghai, will help Taiwan businesses on the mainland and help arrange procurement delegations heading for the island, according to the officials.

The offices will be set up by the Taiwan External Trade Development Council, a semi-official agency charged with promoting overseas commerce.

"The council will become the first economic and trade group from Taiwan to formally open up liaison offices in the mainland," economic minister Shih Yen-shiang said while meeting businessmen in Taipei.

Taiwan and China are still technically at war and Beijing has refused to renounce the use of force against the island despite the fact it has governed itself for more than six decades.

But ties have improved markedly since Ma Ying-jeou of the Kuomintang party swept to power in Taiwan in 2008, pledging to beef up trade links and allowing in more Chinese tourists.

As part of the warming relations, China has sent a series of procurement missions to Taiwan to help boost demand and lift the island's economy.

Two top Chinese banks to open branches in Taiwan
Taipei (AFP) Jan 31, 2012 - Taiwan has allowed two major state-controlled Chinese banks to set up branches on the island, the first mainland lenders to do so, officials said Tuesday.

The Bank of China, the mainland's third-largest lender by assets, and Bank of Communications, the fifth-largest, was authorised to invest $40 million and $51 million, respectively, in the branches, said the Investment Commission.

The two banks have operated representative offices on the island for more than a year prior to being allowed to open branches.

Taiwan and China in 2009 signed a package of agreements on better cooperation in banking, insurance and securities, amid improving ties.

China still considers Taiwan part of its territory, even though the island has governed itself since 1949.

But ties have improved markedly since Beijing-friendly Ma Ying-jeou became Taiwan's president in 2008. He was reelected for a second four-year term this month.

Chinese firms had invested around $184 million on the island since it relaxed rules on mainland investment in mid-2009, according to Taiwanese government data.

Chinese investors are currently permitted to buy into nearly 250 categories in Taiwan's manufacturing, service and infrastructure sectors, and the government is planning to further relax rules in March.