Beijing says its trade with Taiwan should surpass US$50 billion this year, up 25 percent from last year despite political tensions and the SARS outbreak.

Beijing-Taiwan trade has surged over the past decade. Taiwanese companies have invested more than US$100 billion in the mainland, trying to capture a share of its bigger market and take advantage of lower labor costs for manufacturing.

Two-way trade reached nearly US$47 billion in the first 10 months of this year, up 29.4 percent from the same period last year, Xinhua News Agency said on Saturday.

Since 1949, Taiwan banned commercial ties with the mainland until a decade ago. The island still bans most direct travel and shipping for fear of domination by the mainland.

Most trade between the two sides goes through Hong Kong, Macau or other third points.

Beijing imported Taiwanese goods worth nearly US$49 billion in the first 10 months of the year, while sending exports totaling just over US$7 billion the other way, according to Xinhua.

Taiwan's exports to Beijing are mostly components and semifinished goods bound for processing in mainland factories and re-export to the United States, Europe and other markets.

The SARS outbreak threatened to disrupt commercial ties, causing many businesspeople to postpone travel to the mainland and leading to quarantines at some mainland factories.

Taiwanese companies invested US$2.8 billion in the mainland over the first 10 months of the year, Xinhua said.

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