TELEVISION Broadcasts (TVB) has ambitious plans to tap the China and Taiwan markets to increase foreign income. Mr Fung Shing-kwong, general manager for international operations, said yesterday that he expected moves in Taiwan to legalise cable television, which would lead to licensing of TVB's programmes there. He said TVB had been told ''The Taiwanese government is to reach a decision on legalising cable television stations, most of which are broadcasting our programmes without paying us copyright.'' This would mean the company could raise income from sales to these stations instead of losing money due to piracy, which had hit them last year, he said after the company's general meeting yesterday. Cable television is illegal in Taiwan for political reasons. No official comment from Taipei was available yesterday. In preparation for the move, TVB set up an office in Taiwan this year to make programmes in Mandarin. Mr Fung said TVB was stepping up its efforts in the potentially huge mainland market. Payment for TVB programmes sold to China was flexible, he said. For example, some of the five mainland stations provided air-time advertising instead of cash. Piracy of programmes was quite a serious problem in China, he said, although there were signs that the authorities were taking more stringent action against it. Mr Ho Shun-yun, general manager for television broadcasting, said the launching of Wharf's cable television would not affect TVB's income because the two companies aimed at different viewers. He said China's only cable TV station was not allowed to generate income from advertising in its first three years of operation. Income from television adverts accounted for about 40 per cent of the total from advertising in the Hongkong media, Mr Ho said. TVB had about 75 to 80 per cent of TV advertising, he added.