A group of about 100 anti-China demonstrators gathered as representatives of the two sides met in a hotel in Taoyuan near the island's capital, but were kept back by a cordon of uniformed police.

"We should protect Taiwan's sovereignty and Taiwan's own future," said Chang Jaw-liang, one of the protest organisers. "Taiwan should not lean towards China."

One woman set a Chinese flag ablaze, while scores of protesters holding placards opposing "unification" briefly clashed with pro-China supporters before police separated them.

The two-day Taoyuan meeting is the second round of formal talks on the planned pact and will focus on drawing up a list of industries entitled to preferential tariff treatment as soon as the agreement comes into force.

The pact, known as the Economic Cooperation Framework Agreement, has set off a great deal of debate in Taiwan, which has governed itself since 1949.

In Beijing, the Cabinet-level Taiwan Affairs Office called for solving areas of disagreement through dialogue.

"People of different opinions should improve their understanding and solve disputes through rational and reasonable communication rather than resorting to drastic methods," said spokesman Yang Yi.

Taiwan's Beijing-friendly government wants to sign the pact as soon as possible, arguing it will boost growth and employment, but opponents fear it will erode the island's de facto independence from the mainland.

"ECFA is not a cure-all, and it's not a monster," said Tang Wei, the head of the Chinese delegation and a senior official with the mainland's commerce ministry.

The leader of the Taiwanese delegation, Huang Chih-peng, noted that farmers and workers in low-technology industries were concerned about the consequences of the agreement.

"We should try to take into account all the different opinions and ease their concerns," said Huang, who is also the director general of Taiwan's Bureau of Foreign Trade.

The director of China's Taiwan Affairs Office Wang Yi said the ECFA would not affect the island's "vulnerable" industries or labourers, in an interview with a Taipei-based newspaper.

"The mainland will try to select products that will benefit Taiwan's medium- and small-sized companies and local residents when it comes to tax reduction as part of an early harvest program," he told the Want Daily.

He also said that China does not intend to export labour to Taiwan and will not require the island to increase its imports of agricultural products from the mainland, he said.

Taiwan and China have been split since the end of a civil war six decades ago, but Beijing considers the island part of its territory and has vowed to get it back, by force if necessary.

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