TAIPEI - THE highest-ranking Chinese official to visit Taiwan since the two sides split nearly six decades ago arrived on Monday for economic talks that he said were crucial for building trust between the longtime rivals.

Mr Chen's visit was seen as the result of newly elected Taiwanese President Ma Ying-jeou's efforts to improve ties across the Taiwan Strait and end decades of political rivalry.

The two sides have been separated since the Communists won a bloody civil war and took over the mainland in 1949.

China has long threatened to attack if Taiwan refused to unify and sought formal independence.

Although many Taiwanese welcome the ease in tensions between the two sides, some fear that the talks may pave the way for a Communist takeover of the island, 160 kilometres off the mainland's southeastern coast.

Pro-independence supporters and other activists immediately began protesting Mr Chen's trip. A convoy of about two dozen taxis cruised through the streets, honking their horns and shouting anti-China slogans through loudspeakers.

About 50 followers of Falun Gong - a spiritual group banned on the mainland - practiced their meditation exercises outside Taipei 101, once the world's tallest building. Mr Chen's schedule included a dinner at the venue.

A black limousine escorted by police took Mr Chen from the airport to the landmark Grand Hotel, where he spoke briefly in the lobby and urged both sides to treasure their recent warming of ties.

'I am bringing the goodwill wishes to Taiwan's 23 million compatriots from the mainland's 1.3 billion people', he said.

'This visit has not come easily,' he said. 'Only through talks can we build trust and only through cooperation can we create a win-win economic situation.'

Mr Chen, who heads the mainland's Association for Relations Across the Taiwan Strait, is to hold talks with his Taiwanese counterpart, Mr Chiang Pin-kung, on cementing closer economic ties, especially transport links.

Mr Chiang called Mr Chen's visit 'a historic moment in cross-Strait exchanges.'

Before Mr Chen's arrival at the hotel, police dispersed a small group of protesters who unfurled a banner reading 'Bandit Chen Yunlin Get Out' from the hotel's 7th floor.

A pro-independence group, Taiwan Society North, has offered cash rewards for protesters who hit Mr Chen with eggs and the pro-independence Democratic Progressive Party said it plans to greet Mr Chen with protests and sit-ins.

In a letter published in major Taiwanese newspapers Monday, DPP Chairman Tsai Ing-wen said the opposition protests are aimed at preventing Mr Ma's administration from tilting too much toward China.

'If things keep on like this, Taiwan's economy will irreversibly rely fully on China,' she said. 'In the not-too-distant future, would Taiwan still keep its sovereignty? Would Taiwanese get other options other than accepting unification?'

Beijing still doesn't recognise Taiwan's government, and there has been much speculation about whether Mr Chen will address the Taiwanese leader as 'president' when they meet on Thursday.

Mr Chen ignored reporters on Monday when they asked him what he would call the Taiwanese president.

Mr Chen's deputy, Zhang Mingqing, was attacked and thrown to the ground by protesters during an informal visit to the southern Taiwanese city of Tainan on Oct 20, injuring him slightly and prompting him to leave two days ahead of schedule.

Mr Ma has repeatedly tried to assure the public that Taiwan's sovereignty will not be compromised.

He has said he understands the protesters' concerns and will relay 'the voice of the Taiwanese public' during his talks with Mr Chen. -- AP