Taiwan on Wednesday upgraded the status of its de facto consulate in Hong Kong, in a move described as "historic" by officials with analysts saying it signalled warming ties with mainland China.

Authorities in Hong Kong and Macau, both semi-autonomous Chinese territories, this week changed the name and status of Taiwan's representative offices, despite Beijing's stance that the island is part of its territory.

"This is a new milestone and a huge improvement for Hong Kong-Taiwan ties," Lai Shin-yuan, chairwoman of the Mainland Affairs Council, Taiwan's China policy-making body, told reporters at a ceremony in Hong Kong Wednesday.

"I am thrilled to be part of this historic moment," she said, after officially renaming Taiwan's government office in Hong Kong, formerly known as the Chung Hwa Travel Service, to the Taipei Economic and Cultural Office.

The Taiwanese official on Tuesday attended a similar ceremony in Macau to rename the Taipei Trade and Tourism Office in the former Portuguese colony, which will now also be called the Taipei Economic and Cultural Office.

The changes come after eight months of discussions, the council has said, while Hong Kong and Macau each plan to set up their own economic, trade and cultural office in Taipei.

Taiwan has governed itself since the end of a civil war in 1949.

Tensions with the mainland have eased markedly since the China-friendly Kuomintang government of Ma Ying-jeou came to power in 2008 on promises of beefing up trade links and allowing in more Chinese tourists.

Joseph Cheng, political science professor at City University of Hong Kong, said the change will benefit the financial hub and Taiwan in economic, tourism and cultural cooperation.

"With improvement in cross-Strait ties, Hong Kong is now in the position to respond. This is the symbol of that improved ties," Cheng told AFP.

"Obviously this has the blessing from Beijing," he said, attributing the change largely to Ma's China-friendly policies.

Despite improved ties, Taiwan however has said in its national defence report Tuesday that China's military threat against the island is bigger than ever, as China boosts its already impressive military capabilities.

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