Taiwan Beer, made by Taiwan's state-owned brewery, will be sold on the Chinese mainland from May, amid warming ties between the two cross-strait rivals, it was reported Sunday.

The Taiwan Tobacco and Liquor Corp said that China's State Administration for Industry and Commerce had registered its Taiwan Beer trademark and had announced this on its website, the Taipei-based Economic Daily News reported.

This means that, "Taiwan Beer will be allowed to go on sale in the mainland from May 6," the newspaper said.

The beer is expected to generate revenue of between 2.6 and 3 billion Taiwan dollars (77-88.9 million US) in China in 2009, equivalent to a one percent share of China's beer market, said Duan Wei, Taiwan Tobacco and Liquor Corp's chairman.

Initially, the company planned to target only the southeastern provinces of Fujian and Guangdong as the customers there had similar tastes to the Taiwanese, he said.

Taiwan Beer is likely to sell at 6-10 yuans (0.88-1.46 US) a bottle, compared with 5-6 yuan for Chinese brands, he said.

The company has sought to register the 63-year-old Taiwan Beer trademark in China since 1999 but the process had been stalled amid rising tensions after the pro-independence Democratic Progressive Party took power in 2000.

Taiwan and China split in 1949 after a civil war but Beijing still considers the island to be part of its territory and has threatened to invade should it declare independence.

Ties have improved dramatically since the Kuomintang's China-friendly President Ma Ying-jeou took office in May, promising to boost cross-strait trade and tourism links.

In December the two sides launched direct daily flights, and postal and shipping services in a historic move hailed by both sides as cementing a new era in warm ties.

Separately, Taiwan's Kinmen Distillery plans to build its mainland headquarters in Xiamen at a cost of 18 million US dollars, as part of efforts to tap the mainland's vast wine market, the Economic Daily News said. Kinmen currently operates agencies in 15 Chinese provinces and cities.

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