Taiwan's main museum has refused to exhibit two Chinese sculptures owned by late French designer Yves St Laurent.

Beijing has demanded the return of the sculptures, and the director of the Taipei National Palace Museum said she could not display looted objects.

China says the two Qing dynasty bronzes were seized illegally in 1860 by invading French and British forces.

The decision comes on the week the chinese mainland and Taiwan hold their first joint exhibition of relics.

The venture is one of several signs of improving relations between the two neighbours since President Ma Ying-jeou took office in Taiwan last year.

Controversial auction

The two bronzes - of a rat and a rabbit head - were allegedly stolen from Beijing's Summer Palace at the end of the Second Opium War.