Just when the ruptured ties between China and Taiwan started showing signs of progress, the island’s economic minister dished out fresh onslaught with the suspension of China Mobile’s bid for a 12 percent stake in Taiwan’s Far EasTone, the country’s third-biggest phone company.

Taiwan's Economics Minister, Yiin Chii-ming on Tuesday stated that the country will not allow immediate Chinese investment into its telecommunications operators. Chii-ming added that China will have access only to 65 manufacturing sectors in the first phase of liberalization.

Beijing-based China Mobile said last month that it will buy the stake for NT$17.8 billion ($543 million) in what would be the first Chinese investment in a listed Taiwan company.

The development comes in the face of heavy hopes of the deal getting approved as it is subsequent to a statement issued saying that Taiwan would receive Chinese investment.

But, the opposition lawmakers of the island saw the deal with China as a threat on its national security.

“There will still be some reservations about opening Chinese investment into Taiwan because of the special situation between the two sides. The first is that we have to consider the background of the incoming capital, and the second is that we have to establish some control over investments into sensitive or special areas,” said Mr Yiin.

While Far EasTone on the other hand said it understands the situation and in the mean time will continue working on the preparatory stages of the deal, like corporate governance issues.

The detailed rules, as to which sectors are liberalized will be released by the month end, said the minister.