CHINA US Focus - Perspectives shaping the world's most important bilateral relationship

Taiwan and China signed an investment protection pact Thursday, another step on the road to closer business ties that so far seems to be falling short of promises to energize Taiwan’s sputtering economy.

 

The pact, which took two years to negotiate, offers investors from the two sides formal channels for dispute arbitration, while falling short of a Taiwanese demand that arbitration take place under international oversight. It is the 17th economic agreement between the sides since China-friendly President Ma Ying-jeou took office in Taipei in May 2008.