China Mobile has been given approval to open a subsidiary in Taiwan, according to AFP, a move that will raise hopes the world’s largest operator will one day be given the go ahead to buy into Taiwanese operator Far EasTone. China Mobile plans to sell electronics materials wholesale via its subsidiary on the island, according to its application filed late last year. It will be the first mainland telecom firm to establish a foothold in Taiwan.

Earlier this week China Mobile said it has still not gained regulatory approval for its planned US$560 million investment in local operator Far EasTone. Last April China Mobile announced its intention to buy a 12 percent stake in Taiwan’s third-largest mobile operator. Far EasTone’s shareholders have already approved the deal, but Taiwan’s economics ministry said today the country’s rules would have to change before China Mobile would be able to complete the deal.