Beijing -- China said on Friday it wants to sign a broad economic agreement with Taiwan, which would slash import tariffs and open the banking sector, as part of a drive to promote peaceful ties with the self-ruled island.

“In the new year, we will continue to adhere to the principle of developing cross-strait relations and promoting the peaceful reunification of the motherland,” Chinese Premier Wen Jiabao told the largely rubber-stamp parliament's almost 3,000 delegates.

“We will strengthen economic, trade and financial contacts between the two sides,” he added. “We will encourage qualified mainland enterprises to invest in Taiwan.”

Following Taiwan's election of the China-friendly President Ma Ying-jeou in 2008, the two sides have signed trade and tourism deals, though there have been no direct political talks and military suspicions remain deep on both sides.

The next major deal expected to be signed is an economic cooperation framework agreement (ECFA), bringing the export-reliant island and economic powerhouse China closer together.

Many in Taiwan fear the deal would flood the island with products from the much larger China.