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"We will remain committed to the basic principle of peaceful reunification and 'one country, two systems' and vigorously expand exchanges and cooperation between the two sides," said Wen while delivering a cabinet work report to the just-opened annual parliamentary session.

The mainland will continue to step up dialogue and exchanges on the basis of one-China principle with all political parties in Taiwan that advocate the development of cross-strait relations, said the premier at the full session of the National People's Congress (NPC).

Wen also called for the direct links for postal, air and shipping services and trade. Indirect trade volume between the mainland and Taiwan hit a record 107.8 billion U.S. dollars last year, official figures showed.

At a panel discussion of the annual session of the Chinese People's Political Consultative Conference (CPPCC) National Committee on March 4, 2005, President Hu Jintao put forward a four-point guideline on the Taiwan issue.

Hu stressed "four nevers": the mainland will "never sway in adhering to the one-China principle, never give up efforts to seek peaceful reunification, never change the principle of placing hope on the Taiwan people, never compromise in opposing 'Taiwan Independence'."

Relations across the Taiwan Strait will face severe challenges this year, as the Taiwan authorities' efforts to seek "de jure independence" through the so-called "constitutional reform" might enter a "substantive" stage, Jiang Enzhu, spokesman for the NPC session, said earlier at a press conference.

A series of "de-sinicizing" moves recently adopted by the Taiwan authorities in an apparent push for secession showed strains on the relations between the mainland and Taiwan were lurking around, Jiang said.

The election of Taiwan's "Legislative Yuan" at the end of this year and the Taiwan leader election in 2008 are expected to bring changes to the political arena on the island.

Statistics showed Taiwan residents made more than 4.4 million visits to the mainland and mainlanders' visits to Taiwan were more than 200,000 in 2006.