Obama hails improvement in China-Taiwan relations

“My administration fully supports a one-China policy,” Obama said during a town hall-style meeting with Chinese university students in Shanghai.

“We don't want to change that policy or that approach. I am very pleased with the reduction of tensions and improvement in cross-strait relations.”

“Economic and commercial ties that are taking place in this region are helping to lower tensions,” the US president said, noting that it was his “deep desire” to see a continued thaw in ties between the two sides.

China and Taiwan split at the end of a civil war in 1949, and have since been governed separately. Beijing still views the island as part of its territory awaiting reunification, by force if necessary.

But ties have improved dramatically since the China-friendly Ma Ying-jeou won Taiwan's presidency last year, succeeding Chen Shui-bian, who angered Beijing during his eight years in office with his pro-independence rhetoric. Chinese President Hu Jintao called Saturday in Singapore for formal talks on a landmark economic pact with Taiwan to start by the end of the year, in a rare meeting with a top Taiwanese politician, former vice president Lien Chan.

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