Taiwan and China began historic talks on Tuesday aimed at bringing the formerly bitter rivals closer economically after almost 60 years of cross-strait hostility.

Beijing's representative Chen Yunlin and his local counterpart Chiang Pin-kung shook hands as they took their seats at Taipei's Grand Hotel for the discussions that are expected to ink deals potentially worth billions of dollars to each side.

"Now we are very close to agreement, and I hope we will reach a consensus this afternoon on shipping, air transport, postal services and food security," said Chiang, who head's Taiwan's Straits Exchange Foundation.

Late on Monday the two sides announced they had agreed to triple direct passenger flights across the Taiwan Strait that separates the island from China to 108 per week and expand services to 21 more Chinese cities.

Chen, head of China's Association for Relations Across the Taiwan Strait, told Tuesday's talks opening, which was broadcast live on television, that the dialogue would build on progress made in June in thawing the relationship between the former arch foes.

"In June the two sides signed agreements which opened a new page in the relationship between the two sides and marked a milestone in the development of cross-strait ties," he said.

Aside from the four main issues, Chen has said that boosting tourism would also be discussed. The June talks agreed a daily quota of 3000 Chinese tourists to Taiwan, but China still restricts travel to Taiwan.

China is also expected to make good on a 2005 offer to give the island's main zoo two giant pandas.

China and Taiwan have been split since 1949, when Mao Zedong's Communists vanquished the nationalist Kuomintang (KMT) who fled across the strait to the island. Beijing still claims sovereignty over the island of 23 million.

AFP