The People's Republic of China called on both sides across the Taiwan Straits to dissolve all misunderstandings on the name of the island's Olympic team.

The Chinese Olympic Committee and the Chinese Tapei Olympic Committee had signed an agreement in Hong Kong in 1989 to regulate the usage of the name 'Zhonghua Taipei' (Chinese Taipei).

According to this agreement, sports teams and organizations from the island competing or attending conferences on the mainland must be referred to as 'Zhonghua Taipei'.

According to the China News Agency, China reaffirmed its commitment on June 23, 2008, to use 'Zhonghua Taipei' in the Beijing Olympics.

Several officials in Taiwan expressed their satisfaction. Lee Chien-jung , a spokesman for the governing party Kuomintang (KMT), welcomed Beijing's move.

'After the dispute over the name had erupted, KMT chairman Wu Poh- hsiung instructed the KMT to consult the Chinese Communist Party, and now we finally have received a goodwill response. Today's development is helpful to building mutual trust,' he said.

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