Taiwan's China-policy making Mainland Affairs Council said this "unilateral" plan was just another attempt to win over Taiwanese people which would not work.

China is trying to promise equal treatment and economic benefits "as a cover to win over and entice our people and companies to go to the mainland and integrate into its systems, regulations and norms, to accept the Communist Party's leadership", it said. However, China has long offered Taiwan a choice between two pathways - peace and prosperity or war and decline.

China is suffering from economic problems, systemic risks in its financial system and a "deteriorating business environment", the Council added. "This is obviously an attempt to attract Taiwanese funds and talents to mainland China to boost its internal economy."