Hu Jintao suggested on Thursday the Chinese mainland and Taiwan set up military security confidence-building mechanism and reach a peace agreement through consultation.

Addressing the opening of the Communist Party of China's (CPC) 18th National Congress, Hu suggested the two sides jointly explore cross-Straits political relations and make reasonable arrangements for them under the special condition that the country is yet to be reunified.

"We hope the two sides will discuss the establishment of a cross-Straits military security confidence-building mechanism to maintain stability in their relations and reach a peace agreement through consultation so as to open a new horizon in advancing the peaceful growth of these relations," he said.

Hu said peaceful reunification is in the best interests of the Chinese nation, including compatriots in Taiwan.

"To achieve peaceful reunification, we must, above everything else, ensure peaceful growth of relations between the two sides of the Taiwan Straits," he said.

Emphasizing the one-China principle, Hu said China's territory and sovereignty have always been indivisible and no division will be tolerated.

He said the two sides of the Taiwan Straits should uphold the common stand of opposing Taiwan independence and of following the 1992 Consensus, increase their common commitment to upholding the one-China framework and, on this basis, expand common ground and set aside differences.

"We are ready to conduct exchanges, dialogue and cooperation with any political party in Taiwan as long as it does not seek Taiwan independence and recognizes the one-China principle," he said.

Hu urged the two sides to deepen economic cooperation, enhance a common sense of national identity, and further people-to-people contacts to cultivate mutual goodwill.

Hu said the compatriots on both sides belong to the same Chinese nation and form a community of common destiny bound by blood ties.

Hu warned against any separatist attempt for Taiwan independence, saying that the Chinese people will never allow anyone or any force to separate Taiwan from the motherland by any means.

"Any separatist attempt for Taiwan independence, which undermines the common interests of the compatriots on both sides of the Taiwan Straits, is doomed to fail," he said.