TIMELINE: Business, pleasure, benefit in China-Taiwan thaw

(Reuters) - Historic regular tourist flights between Taiwan and China began on Friday, in a show of conciliation between the long-time rivals whose fractious relations have been regarded as one of north Asia's most dangerous flashpoints.

Ties between China and the self-ruled island over which it claims sovereignty have warmed since the landslide election victory of President Ma Ying-jeou, whom analysts say Beijing looks upon more favorably than his predecessor.

Here are some examples of how relations between the two have developed from the time Ma was elected.

-- March 22, 2008: Ma elected. Pledges to boost local economy by improving trade with China, the world's No. 4 economy, and loosening travel restrictions to attract more than 1 million Chinese visitors to the island a year.

-- April 3: Taiwan regulators approve plan by Fubon Financial, one of the island's largest financial services groups, to buy a stake in China's Xiamen City Commercial Bank, a milestone move and the first such investment.

-- April 12: Taiwan vice president Vincent Siew meets briefly with Chinese President Hu Jintao at annual Boao economic forum; both say they want closer economic ties.

-- On same day Beijing approves Taiwan banks' entry into China market, saying they can set up legal entities in markets such as Hong Kong and Macau, which can then open branches in China or buy into mainland lenders.

-- June 12: Taiwan passes bill allowing its banks to exchange Chinese currency for Taiwan dollars Previous rules let only up to 20,000 yuan ($2,900) be exchanged per transaction on two groups of offshore Taiwan-held islands, Kinmen and Matsu, although Taiwan's major cities saw black market trade.

-- June 12/13: Beijing hosts first top-level talks in almost a decade. The two sides sign a deal to launch first regular weekend flights since 1949. Agreeing to set up representative offices to handle visa issues customarily handled in Hong Kong, they delay talks on direct cargo flights, a Taiwan priority item.

-- June 16: Taiwan securities regulator announces plans to allow the island's brokerages to invest up to 30 percent of their net assets in China, up from 10 percent previously.

-- June 26: Taiwan says that in August it will relax the cap that stops listed Taiwan businesses from investing more than 40 percent of their net assets in China.

-- June 30: Taiwan says China's state news agency Xinhua and the People's Daily newspaper, considered a mouthpiece of the Communist Party, can re-station reporters in Taiwan. The island kicked out those news organizations during a 2005 war of words.

-- On same day Taiwan freezes, rather than raises, its $59 million foreign development aid budget, as Ma seeks to mend ties with China rather than wrest allies from Beijing via chequebook diplomacy. The budget is only enough to deepen ties with Taiwan's 23 existing diplomatic allies.

-- July 3: Taiwan says it will relax restrictions on mutual-fund investment in China-related stocks, allowing them to increase from 0.4 percent to 10 percent.

-- July 4: First 'weekend' flights touch down in Taipei. They are the first regular flights, aside from a few charters on select holidays, since 1949, when defeated Nationalist forces fled to Taiwan after the Chinese civil war.

Source: Reuters

(Writing by Gillian Murdoch, Beijing Editorial Reference Unit; Editing by Alex Richardson)