Two months before the Olympics, the Chinese government is very sensitive to international criticism, and Beijing's long-standing threat to use force against Taiwan, if it takes steps towards independence, continues to be an obvious focus for concern.

The two sides hope that the negotiations will pave the way for regular meetings, helping to improve cross-strait relations after decades of tensions and mistrust.

But while economic growth and a reduction in cross-straits tension will certainly be welcome, an agreement on core political principles - including re-affirmation of the One China principle - may be harder to reach.