By Damian Grammaticas BBC correspondent in Hong Kong

Taiwan's government has announced plans to lift more restrictions that currently limit business exchanges with China.

The island says it will allow Chinese companies to advertise their products on the island.

And it will make it easier for Chinese employees of large firms to work in Taiwan.

In a process that began last year, Taiwan is slowly dismantling its 50-year-old restrictions on trade with mainland China.

In the latest move, the chairwoman of Taiwan's Mainland Affairs Council, Tsai Ing-wen, has announced that she wants to end a ban on Chinese firms advertising goods and property on the island.

She said she is submitting changes to the law to be approved by Taiwan's parliament.

More people from mainland China will be able to make business trips to Taiwan, and Chinese employees of multinational, or Taiwanese, companies will be allowed to work in Taiwan.

Taiwan's government wants to try to balance up its economic exchanges with China. At present the majority of the money of investment has been in one direction, from Taiwan to China.

It is hoped the changes will help boost the island's advertising and media industries.

Taiwan's government has been under pressure from local companies to make it easier to do business across the Taiwan Strait.

Direct links stuck

Vast amounts of trade are already done with its old political rival, and the island's government is having to update its laws to reflect the new reality.

On the biggest issue of all though - opening up direct shipping, transport and postal links with mainland China - there is little sign of progress.

The two sides are still not talking to each other, and remarks by Taiwan's President, Chen Shui-bian, earlier this month, that the island is a separate country from China, angered Beijing.

There is no sign it will be willing to sit down and negotiate with his government in the near future.