The European Commission President, Jose Manuel Barroso, has urged China to initiate a dialogue with Taiwan before Beijing hosts the Olympics in 2008.
Mr Barroso said it would enhance China's standing internationally.
In a speech in Beijing, he said the international community would welcome China starting a direct dialogue as a sign of great maturity.
He also urged the Chinese government to introduce democratic reforms, saying the sustainable growth of the world's seventh-largest economy depended on it.
‘China's internal long-term sustainability also depends on its ability to introduce political reform, allowing for more democracy and civil liberties,’ said Mr Barroso.
