The entry of China and Taiwan into the World Trade Organisation (WTO) was supposed to help normalise relations between them, but two early tests show no signs of a change.
Taipei did offer to hold talks with Beijing about Taiwan's long-standing ban on direct trade and transport links. But Beijing refused because Taiwan proposed that the talks take place within the WTO framework. Beijing views direct flights and trade as an internal matter.
Taiwan-Hong Kong talks on a new aviation bilateral have also failed. To skirt the question of Taiwan's status, government officials have previously only negotiated informally and the final deal was signed by the airlines rather than the officials themselves. This time Taipei sought to upgrade the talks to country-to-country status, but the parties eventually extended the airline-based accord.
Source: Airline Business