"Chen Shui-bian's splittist plot for Taiwan independence is doomed to failure," a spokesman from the cabinet's Taiwan Affairs Office said in a statement faxed to AFP.

"(China will) never tolerate Taiwan independence and will never ever allow the splittist forces of Taiwan independence to separate Taiwan from China under any name and in any form."

China was reacting to a national day speech given by Chen in Taipei on Wednesday in which he said Taiwan was a sovereign state and accused China of jeopardising world peace in its military build-up and war exercises aimed at re-taking the island.

"With China's rapid rise and relentless military build-up, the 'China threat' is no longer confined to confrontation across the Taiwan Strait. In fact, it has already seriously impacted world peace," Chen said.

"Taiwan and the People's Republic of China are two sovereign, independent nations, and neither exercises jurisdiction over the other... only the people of Taiwan have the right to decide their nation's future."

The mainland spokesman criticised Chen for "ignoring the main will of Taiwan compatriots for peace, stability and development and ignoring the general trend on both sides of the strait to develop relations."

China would seek to reunify with the island "peacefully," the spokesman said.

But he also reiterated Beijing's "clear and consistent" position on Taiwan, a reference to China's repeated vow to retake the island by force if it should declare formal independence.

Taiwan and China split in 1949 after a civil war. The island has since ruled itself independently of China.

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