AFP - Taiwan's efforts to cement ties with former rival China could undermine its vibrant media environment by skirting topics deemed sensitive to Beijing, observers say.

Concern has grown after Taiwan's ranking fell 23 places to number 59 in the 2009 press freedom index released by Paris-based Reporters Without Borders (RSF) last week.

The precipitous drop has left Taiwan trailing behind the Chinese territory of Hong Kong, which comes in at 48, as well as some African nations such as Ghana, Mali and Burkina Faso.

In one example of the problems the island's journalists say they are facing, a Taiwanese reporter complained about pressure from the authorities when covering an exiled Chinese dissident's visit to the island.

"They told me he's a 'bad guy' who likes to brag so why bother writing about him," the reporter, who asked not to be named, told AFP.

"They believe they are doing the right thing for the big picture, for the greater good in history."

While RSF said Taiwan's press freedom was not in danger, it attributed the downgrading partly to the ruling party's attempt to interfere in the media.

"The state must take action to improve records and prevent restrictions, violence or any sort of obstacle to the media freedom," said Vincent Brossel, head of RSF's Asia desk.

The index, based on questionnaires completed by hundreds of journalists and media experts, reflects press freedom violations that took place between September 2008 and August 2009.

Taiwan's government, which took office in May 2008 pledging a more pro-Beijing stance than its predecessor, has denied interfering.

"We did not see any media being pressured for criticising the government when it was not doing enough. The government humbly accepted the criticism," said cabinet spokesman Su Jun-pin.

Some observers and journalists say the RSF index is a warning of how far the island is prepared to go to appease its giant Chinese neighbour.

"More media outlets are self-censoring on sensitive issues such as the Dalai Lama or Rebiya Kadeer by downplaying their coverage or focusing on negative angles," said Leon Chuang, head of the Association of Taiwan Journalists.

Beijing accuses the Dalai Lama of trying to separate Tibet from China and blames Kadeer for bloody ethnic unrest in her home region Xinjiang in the northwest of the country in July.

It all comes down to business, as public and private sectors aim to cash in on China's rising economic clout, Chuang said.

"It is a threat to Taiwan's press freedom and diversity. If this persists, we will only be getting select coverage and one-sided stories," he said.

Taiwan and China split in 1949 after a civil war but Beijing still considers the island part of its territory awaiting reunification, by force if necessary.

Ties with China have improved markedly since President Ma Ying-jeou became president here last year but were strained during the Dalai Lama's visit in late August and early September.

Beijing was also irritated over the recent screening of a Kadeer biopic on the island but reportedly is planning to reward Taipei by signing a key financial agreement after she was barred from visiting.

"We see political considerations weighing on the handling of news as the government makes the development of cross-strait ties its priority," said Lo Shih-hung, a media expert at National Chung Cheng University.