Taiwan, China set for key investment deal in August

TAIPEI (AFP) - Taiwan and China are expected to forge a much-anticipated investment protection agreement in the next round of high-level talks in August, officials and media in Taipei said on Sunday.

An agreement on investment protection has been high on the bilateral agenda of China and Taiwan since the two former rivals signed a sweeping trade pact in the middle of 2010.

The investment deal was earlier expected to be hammered out in June but was put off, fuelling speculation over the negotiations.

According to Taiwanese media, the problem is Chinese reluctance to accept a dispute resolution mechanism, fearing that it would imply tacit recognition of Taiwan sovereignty if it were to treat both parties on an equal basis.