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Updated Tuesday, June 23, 2009 10:21 am TWN, AP

Taiwan defense firm seeks China deal

TAIPEI, Taiwan -- Taiwan's state-owned defense company said Monday it is discussing cooperation on building commercial aircraft with a Chinese company.

Aerospace Industrial Development Corporation spokesman Li Shih-chang said his company met with China's state-owned Commercial Aircraft Corporation during a Shanghai air show in May, but the sides have yet to reach a deal.

News of the talks comes amid steadily improving ties between Taiwan and the mainland.

AIDC made Taiwan's Indigenous Defense Fighter jets, and is now responsible for IDF maintenance.

Taiwan and China split amid civil war in 1949. Beijing continues to claim the island as its territory, and threatens to attack if Taiwan makes the break permanent.

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	In this August 14, 1999 file photo, a Taiwan-made Indigenous Defense Fighter, IDF, does a high-speed fly over during an air show at Taoyuan Air Force Base in Taipei, Taiwan. Taiwan's state-owned defense company said yesterday it is discussing cooperation on building commercial aircraft with a Chinese company. (AP) Enlarge Photo


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