China's Xi Jinping and Taiwan's Eric Chu in high-level talks
The leader of Taiwan's ruling party and Chinese President Xi Jinping have held the highest level talks between the two sides in six years, the BBC reported.
Nationalist Chairman, Eric Chu, was in Beijing for the meeting, a sign of warming relations between the sides.
But any rapprochement is controversial in Taiwan, which has seen protests over the prospect of closer ties.
Chinese nationalists fled to Taiwan in 1949 after a brutal civil war with the communists.
China sees Taiwan as a breakaway province that will ultimately return.
But many Taiwanese oppose reunification and fear that growing economic dependency on Beijing could be the first step towards that outcome, correspondents say.
Mr Xi said during the meeting that China and Taiwan should settle political differences through consultation, but with Taiwan's acceptance that it is part of China, according to Xinhua state news agency. He also said Beijing will make greater efforts to open up to Taiwan and help it to develop economically.
"The two sides can consult with each other on equal basis under the principle of 'one China', and reach a reasonable arrangement," Mr Xi said.