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The association would serve as a platform to promote cross-Strait economic and trade exchanges the peaceful development of cross-Strait relations, said chairman Chang Han-wen.

Chang said the association would also energetically push for the early  realization of direct links of mail, trade and transport services across the Taiwan Strait.

"The development of Taiwan businesses will not be guaranteed if there is no peaceful and stable environment," Chang said.

The association, a non-profit organization initiated by Taiwan business people, is the first national association funded by Taiwan businesses since the first local association of this kind was founded in Beijing in 1990.

So far, more than 100 local associations of Taiwan companies have been set up on the mainland with nearly 20,000 members, accounting for one third of the total Taiwan-funded enterprises in the mainland.

Chen Yunlin, director of the Taiwan Affairs Office of the State Council, was invited to be honorary chairman of the association.

Chen said the establishment of the association would have a positive and far-reaching impact on cross-Strait economic exchanges and cooperation and the peaceful development of cross-Strait relations.

He expressed the hope that the association would listen to Taiwan business people's opinions, protect their legal rights, help solve their problems and work as a bridge between its members and the government.

Officials with the National Development and Reform Commission, the Ministry of Commerce and Ministry of Civil Affairs were also invited to be advisors to the association.

"By doing so, we hope we can help Taiwan business people in the mainland keep smooth communication with relevant departments of the State Council," Chang said.