The two split in 1949 at the end of a civil war, and tensions between them flared frequently during the eight years the island was ruled by the pro-independence Democratic Progressive Party until Ma of the China-friendly Kuomintang took office in May.

'Taiwan is no longer a troublemaker but a peacemaker,' Mr Ma said on a visit to the central Taichung county.

His remarks referenced the provocative language by the pro-independence Chen Shui-bian, who retired after his second and final four-year term as president expired in May.

Mr Ma meanwhile pledged to maintain a sufficient self-defence force for the island while seeking detente with China.

'We're pleased to negotiate (with China), but we won't talk amid fear,' he said during a ceremony marking the anniversary of the production of the first locally designed and manufactured military fighter.

'As we actively seek peace, we must fully prepare ourselves.'

China has repeatedly threatened to invade Taiwan should the self-ruled island declare formal independence.

However, tensions have eased since Mr Ma was elected president on a platform of boosting the economy and reducing hostilities across the Strait.

In the latest sign of improving ties, two giant pandas - seen as goodwill ambassadors by Beijing - made their eagerly-awaited and groundbreaking trip from China to Taiwan last week. -- AFP