China and Taiwan investment deal

The agreements were signed in the eastern Chinese city of Nanjing

China and Taiwan have agreed to allow investment across the Taiwan Strait in the latest sign of improving relations between them.

Chiang Pin-kung of the Straits Exchange Foundation signed agreements with Chen Yunlin of China's Association for Relations Across the Taiwan Straits.

In a joint statement they pledged to "realise the normalisation of cross-strait economic ties".

It was the third set of deals since Taiwan's new government came to power.

President Ma Ying-jeou has been in power for a year since running for election on a promise to improve the economy through closer ties with the Chinese mainland.

In the past, while there has been a great deal of mainland investment from Taiwanese firms, Chinese companies have needed permission from the Taiwanese government to invest in Taiwan.

In a joint statement, the two sides said that they faced a "rare and historic opportunity" and that they would "encourage and promote mainland businesses to... invest in Taiwan".

Taiwan's economy went into recession late last year and both sides said they hoped their agreements would help both sides to weather the economic storm.