TAIPEI Taiwan's government may ease restrictions on companies investing in China by the end of the year, local media reported on Saturday.

However, any relaxation would be dependent on a cross-party economic advisory body reaching a consensus on the issue and requesting that the government make changes to existing regulations, the ****United Daily News*** said, quoting cabinet Secretary General Chiu I- jen.

Those measures that would not require a revision of existing laws could be implemented by year end without any problems, though those that would involve legislative changes would need the cooperation of the opposition-dominated legislature, DPA quoted Chiu as saying.

The proposed economic advisory committee will consist of lawmakers from major political parties and business leaders and will be charged with exploring ways of boosting the island's ailing economy.

Taiwan currently restricts China-bound investments under the "no haste, be patient" policy, which was formulated by the previous nationalist government in 1996 to ensure the island's economy would not become overly dependent on the mainland market.

Chiu said for a revision of the existing policy by year-end the cooperation of Parliament was needed.

In addition, mainland China's cooperation was also needed for the full opening of direct links and the loosening of current investment restrictions, he said.

Chiu declined to comment on whether the manufacturing of semiconductors and computer assembly on the mainland would be among the first areas to be opened.