Chen met his cabinet and officials of the ruling Democratic Progressive Party late Tuesday after last week's fence-mending visit to China by the opposition Kuomintang.

In remarks clearly aimed at the KMT, which favors eventual unification with China, Chen said no political party, group, or individual has the right to bypass the government and deal with Beijing.

``Cross-strait exchanges must be governed by existing laws,'' he said. ``Relevant agencies should deal with whoever makes deals in private with a foreign government, the [mainland] or its representatives without permission or authorization according to law.''

The five-day visit by KMT vice chairman Chiang Pin-kung resulted in promises from China of economic sweeteners and an offer to resume long-stalled dialogue with Taiwan.

During his visit, Chiang was feted with dinners and meetings by senior officials as Beijing sought to ease strains heightened by the passage of an anti-secession law that sanctions war if Taiwan declares formal independence.

``I believe the basis of our job is how to ensure the continued development of Taiwan's economy,'' Chiang said.

KMT secretary general Lin Feng-cheng said Wednesday: ``Everything the KMT does is in the interests of the Republic of China [Taiwan's official title], and the Taiwan people. Is that wrong?''

Chen, who has dismissed the consensus reached between the KMT and the Chinese Communist Party as meaningless, cautioned over wider economic opening with the mainland.

``We can't keep opening up and ignore the most basic and important aspect of `effective management','' Chen said.

``National security and administration departments should immediately review relevant economic and trade policy,'' he said, without elaborating.

Taiwan businesses have poured more than US$100 billion (HK$780 billion) into the mainland since the late 1980s and the business community has long clamored for closer trade ties with China, the island's largest export market and increasingly critical to its economic growth.

Chen offered to hold a meeting with political leaders to discuss the issue.

``I am willing to invite leaders of ruling and opposition parties to hold a meeting so that we can avoid a flurry of mainland fever hurting Taiwan's dignity and interests,'' he said.

REUTERS