The American Chamber of Commerce (AmCham) in Taipei on Wednesday cautioned Taiwan not to become excessively reliant on its powerful neighbour China as it sought to boost the economy.

"China accounted for half of Taiwan's economic growth last year. Over-dependence on any one market is risky, even without the cross-strait political complications," it said in its 2011 Taiwan White Paper.

It urged Taiwan to boost trade connections with other major markets such as Europe, Japan and the United States to balance its fast-growing economic ties with China.

AmCham noted that while a major trade pact which Taiwan signed with China last year has helped improve the business climate, the island still faces "enormous challenges" before it can capitalise on the new opportunities.

Taiwan would also need to "assure sufficient supplies of human capital, raise government efficiency, (and) plan and build world class infrastructure," it added.

It noted that the pact with China combined with last year's vigorous growth -- a 24-year high of 10.88 percent -- have prompted many multinational corporations to pay renewed attention to Taiwan.

"But there is no certainty that such increased attention can be converted into expanded volumes of actual trade and investment," it warned.

Last year's pact, the Economic Cooperation Framework Agreement, was signed in a bid to boost the flow of goods and personnel across the strait and spur growth.

However, critics have warned that the pact would give the mainland a stronger grip on Taiwan and erode the island's de facto independence.

China regards Taiwan as part of its territory awaiting reunification, by force if necessary, although the two sides have been governed separately since the end of a civil war in 1949.

earlier related report
Taiwan's top prosecutor pays first visit to China
Taipei (AFP) June 8, 2011 - Taiwan's chief prosecutor on Wednesday left for China for the first time, officials said, seeking Beijing's help to extradite fugitives under a landmark judicial cooperation pact.

Prosecutor general Huang Shyh-ming and a team of prosecutors and officials flew to Beijing for an eight-day visit, said a justice ministry official without elaborating.

Local media have reported that Huang is expected to ask Chinese authorities to send back to Taiwan a number of fugitives who are on the island's most-wanted list and who had fled to the mainland.

He reportedly will also visit courts and the justice ministry on his trip to Beijing.

Taipei and Beijing signed the judicial cooperation agreement in April 2009 as part of efforts to battle criminals cashing in on the ever-closer economic ties between the two sides.

Bilateral ties have improved markedly since President Ma Ying-jeou of Taiwan's came to power in 2008 on a China-friendly platform of ramping up trade links and boost tourism.

Taiwan and China split in 1949 at the end of a civil war.