"Taiwan compatriots are our flesh and bones. We sincerely hope Taiwan can have social stability and economic development, and that its residents can live in peace and contentment," said Li Weiyi, a spokesman for the Chinese Cabinet's Taiwan Affairs Office during a press conference.

"We do not want to see unfortunate events happening," Li said, without elaborating.

About 1,000 demonstrators held a fourth day of protests in Taipei on Tuesday, demanding Chen's resignation over a series of corruption scandals.

Chen is battling allegations that his family and inner circle have used their positions for personal financial gain. Chen has insisted he is innocent and has no reason to step down before the end of his term in May 2008.

Asked about China's reaction to the protests, Li said: "We've taken note of relevant reports." He did not comment directly on the demonstrations.

Taiwan and China split in 1949 but Beijing claims the self-ruled island as its own territory. They have no official ties and Beijing refuses to have direct contact with Taipei.

China accuses Chen of blocking efforts to unite the two sides and has tried to undermine him by building ties with the Nationalists and other opposition parties.

Beijing has threatened repeatedly to attack Taiwan and has hundreds of missiles aimed at the island.