The heads of Taiwan's opposition Kuomintang Party and China's ruling Communist Party met for the first time in nearly 60 years in an effort to reduce tensions across the Taiwan Strait.

Kuomintang chairman Lien Chan and Chinese President Hu Jintao shook hands warmly as they met in the Great Hall of the People in the Chinese capital amid increasing concern in Beijing that Taiwan is moving toward formal independence.

"This meeting today is a historic meeting between the leaders of our two parties," Hu said in the widely televised event.

"Although differences between our two parties remain at present, as long as both sides can place importance on the interests of the Chinese nation, on the common prosperity of the compatriots on both sides of the strait, we will be able to overcome differences and create a bright future," he said.

China has said it would consider a declaration of independence from Taiwan, which it claims as its own territory, as an act of war.

In March it passed an "anti-secession" law which gives it a legal basis to attack the island territory if it moves towards independence.

PHOTO CAPTION

Visiting head of Taiwan's opposition Kuomintang Party Lien Chan (L) meets with Chinese President Hu Jintao (R) at the Great Hall of the People in Beijing. (AFP)