TAIPEI - TAIWAN'S ruling Nationalist Party will consult with Chinese Communist leaders this weekend in Shanghai on ways to help both sides weather the global economic crisis, the party chairman said on Thursday.

Mr Wu Poh-hsiung's statement comes amid new indications of warmth between the rivals. Early this week, China and Taiwan initiated daily air and direct maritime links after a break of nearly 60 years.

Speaking to reporters in Taipei, Mr Wu said he will discuss possible investments by the two sides in each other's infrastructure projects, as well as Chinese loans for Taiwanese businesses operating on the mainland.

'We will seek to expand bilateral exchanges in the financial and service industries,' he said. 'We will also push for more bilateral trade exchanges.'

Taiwan and China split amid civil war in 1949. China continues to claim Taiwan as part of its territory and has threatened to attack if the island moves to formalise its de facto independence.

Tensions between the rivals have abated significantly since the inauguration of Taiwanese President Ma Ying-jeou in May. In contrast to his pro-independence predecessor, Mr Ma wants to tighten economic relations with China as a way of boosting Taiwan's economy.

However, he has pledged not to discuss unification during his time in office. Bringing the two sides together under its own leadership has been the basis of China's Taiwan policy for the past 59 years.

Mr Wu said he would not meet with Chinese President Hu Jintao - also the Communist Party chief - during his time on the mainland. He added that no political topics were on the agenda for the Shanghai talks. -- AP