China and Taiwan yesterday took a big step towards closer ties with agreements for regular non-stop charter flights, more bilateral tourism and plans for future talks.

The agreements were the fruits of the first official meeting between the two sides in 10 years. They follow Taiwan's election last month of a more pragmatic government led by Ma Ying-jeou, the president. In addition, Taiwan's parliament yesterday passed legislation that legalises the conversion of renminbi, the Chinese currency, on the island. The government said it was preparing measures to allow banks to exchange renminbi for the local currency by next month, to facilitate Chinese travel to Taiwan.