The Chinese delegation was led by Zheng Lizhong, vice president of the Association for Relations Across the Taiwan Straits (ARATS) and the Taiwanese mission was headed up by Kao Koong-lian, vice chairman of the Straits Exchange Foundation (SEF).

Both parties agreed to hold a fifth round of talks between ARATS and SEF in the Chinese city of Chongqing on June 29, where they plan to sign the pact and an agreement on protecting intellectual property rights.

Zheng said that the ECFA will mark a milestone in relations between the two Straits, signaling a new stage in ARATS-SEF negotiations. They also agreed to reduce trade and investment barriers in line with the World Trade Organisation’s (WTO) regulations and cut the taxes on a number of products, he added.

Kao said that both ECFA and the agreement on intellectual property protection would be extremely important agreements for economic cooperation between the two Straits in the future. "We want to create an environment of peace and stability, prosperity and mutual benefit," he stressed.

About 530 industrial products from Taiwan are expected to be allowed preferential tariffs as part of the deal, while Beijing is demanding roughly 270 Chinese items be placed on the early harvest list, according to the Taiwanese media.