China and Taiwan are cozying up.

Officials from China and Taiwan gathered in the Taiwanese city of Chungli on Tuesday to sort out contentious issues in the comprehensive Economic Cooperation Framework Agreement (ECFA), which was signed in June last year.

Taiwan and China have enhanced economic cooperation in recent years though they still remain bitter political rivals. Political standoff between Taiwan and China eased a wee bit after the nationalist Party came to power in 2008.

In recent years, Taiwan opened up sectors like low-end electronics, auto parts and textiles, and has signed various pacts like daily direct flights between the countries. Taiwan has also been on the lookout for a free trade-like deal with China that would reduce tariffs. 
( From Ibtimes.com)

This is a great development for these two Nations that have been on a war standoff for almost 60 years. Taiwan separated from mainland China in 1949 after the Chinese civil war that led to the take over of China by the communist party of Mao Zedong  and the flight of the ROC leader Chiang Kai-chek  with China's gold reserve to the Island then called Formosa with more than 2 millions people. 
The political status of the Republic of China ( Taiwan) is a contentious issue. The People Republic of China(PRC) claims that the ROC government is illegitimate, referring to it as the "Taiwan Authority". The ROC, however, with its own constitution, independently elected president and a large army, views itself as an independent sovereign state. Its territory has never been controlled by the PRC. According to a poll taken by the TVBS in 2010, the majority of ROC residents—64%—opt for the status quo (i.e. no independence, no unification with mainland China), while 19% favor independence and 5% unification. ^[wikipedia]