Taiwan will allow computer giant Lenovo Ltd to become the first Chinese mainland firm to establish a subsidiary on the island, the government said a significant step forward in commercial ties between the mainland and the island. Yesterday, the Taiwanese authority said it had "agreed in principle" to allow Lenovo to take control of Taiwan's IBM personal computer business. The decision followed Lenovo's January acquisition of IBM's PC unit, a move that made it the world's third-largest computer manufacturer.