Taiwan's China Airlines (CAL) has put plans to buy a 25% stake in mainland China-based China Cargo Airlines on hold, admitting there has been no progress in negotiations in recent months, but claiming that this "doesn't mean it's been called off".

CAL revealed it was in talks to buy a minority stake in the Shanghai-based operator in July, from 70% shareholder China Eastern Airlines. No deal was sealed and sources suggest plans were dropped on political grounds.

Mainland China views Taiwan as a renegade province, and did not welcome the election of Chen Shui-Bian as Taiwan's president earlier this year, who was felt to be too pro-independence.

Source: Flight International