Taiwan's China Airlines (CAL) has finally won approval for a ground-breaking cross-strait investment in Shanghai-based China Eastern Airlines' cargo arm. A year after the deal was officially unveiled, CAL officials said the Taiwanese Economics Ministry's investment review board had granted the airline permission to invest US$47 million in China Cargo, which is 70 per cent owned by China Eastern. The deal, which represents a 25 per cent stake in China Cargo, is expected to be completed by the first quarter of next year. China Cargo will distribute new shares to CAL, diluting the stakes held by China Eastern and China Ocean Shipping. The investment could turn into a watershed for cross-strait relations, enlarging the economic links between Taiwan and the mainland. The lengthy approval process by Taipei highlights the caution with which it still views the mainland.