TAIPEI (AFP) - Taiwan will allow Chinese investors to buy into certain sectors on the island in another sign of easing cross-strait ties, officials said Wednesday.

The economics ministry is planning to lift bans on mainland investments in 99 categories in the manufacturing, service and infrastructure sectors as early as June, an official said.

The categories include computers, automobiles, hotels, restaurants, retailing and textiles, the ministry said, adding that a company with a minimum of 30 percent Chinese ownership is considered a mainland investor.

However, such investors will be initially barred from taking stakes in finance, certain technology sectors and other sensitive industries such as defence, it said.

The ministry will formally announce the measures later this month pending the cabinet's final approval.

The move came after Taipei and Beijing agreed in talks last month to expand air links and promote mainland investment on the island, in part to help both sides weather the global financial crisis.

Taiwan has since said it would allow Chinese institutional investors to buy stocks listed here, which is expected to initially attract at least 22 billion Taiwan dollars (S$974.6 million) in new funds.

Ties have improved dramatically since the Beijing-friendly President Ma Ying-jeou took office last year pledging to boost trade and tourism with China.

Taiwanese companies have for years invested huge sums in China but investment by mainland firms in the island has previously been restricted.

Taiwan, whose economy plunged into recession late last year, has been loosening various controls.

Officially, Beijing still views Taiwan as part of its territory awaiting reunification, by force if necessary. The two sides have been governed separately since they split after a civil war in 1949.