"This is functioning completely as a business office. It is not doing any sort of diplomatic or political activities," Board of Investment (BoI) Chairman Mahmudur Rahman told The Daily Star yesterday. "The BOI has given permission for this office to operate and this permission has not been cancelled."

"No instruction has been given to close this office which has been allowed to operate for helping Bangladesh's economic development."

News agency CNA on March 26 quoted Taiwan foreign ministry official Lin Sung-Huan as saying that the Dhaka office is operating normally despite obstruction from Beijing.

Bangladesh ministers concerned dismissed a Chinese complaint that this office was issuing visa while Lin Sung-Huan declined to comment on reports of visa issuance.

Huan also rejected the suggestion of any links between the resignation of commerce minister Amir Khosru Mahmud Chowdhury and the opening of Taiwan's trade liaison office saying, Khosru stepped down due to Bangladesh's domestic economic problems.

China had warned Bangladesh of 'unimaginable consequence' if it does not close down the Taiwan office. It, however, had also said it does not oppose Bangladesh's doing business with Taiwan, it only opposes political recognition of Taiwan as a separate state.