China's leading passenger van maker on Tuesday signed an agreement with Taiwan vehicle manufacturer Sanyang Industry to set up what would be the first cross-strait auto venture here, a report said.
Under the "letter of intent," Xiamen Golden Dragon Van Co. and Sanyang said they would invest "several billion Taiwan dollars" (tens of millions of US) to manufacture buses, other vehicles and parts on the island, the state-funded Central News Agency said.
If realised, the joint venture would mark the first time automakers from mainland China have opened up a new company here aimed to tap the global bus market, it said.
The two partners said they were still in talks on details of the joint venture such as the location of the new plant.
Golden Dragon, which was founded in 1988 and listed on the Shanghai stock market, has sold its buses to 80 countries, the agency said.
China and Taiwan split in 1949 after a civil war, but relations have warmed since May last year, when China-friendly President Ma Ying-jeou took office.
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