Judging from the experience of other countries, Chen said the "cross-strait common market" would mean the free flow of personnel, products and capital between Taiwan and China.

Chinese laborers would be able work on the island without any restrictions, agricultural products from across the Strait would flood the local market, and Taiwan's capital would take flight to China, Chen said.

"This would lead to a massive loss of jobs, decreased wages for laborers, serious threats to farmers' livelihoods, and the acceleration of the hollowing-out of the industry," the president said.

"The cross-strait common market would mark the beginning of disaster, as Taiwan would be economically swallowed up by China," he said during a visit to Inotera Memories Inc, a computer memory chip maker in Taoyuan.

The "cross-strait common market" has been put forth by former Premier Vincent Siew, whom KMT presidential candidate Ma Ying-jeou has named as running mate.

Ma has stressed that he will be counting on Siew as the chief architect of economic reform if elected president.

But Chen emphasized the political implications of the "cross-strait common market," describing it a "one China market," which is packaging "one China" in "market."

He said the "common market" is of the same nature as the "1992 consensus," which packages "one China" in "different interpretations."

"One is political 'one China," and the other is economic 'one China.' Their ultimate goal is to have Taiwan give up its sovereignty, paving the way for ultimate unification of both sides of the Strait," said Chen.

Beijing has been pressing Taipei to accept the "one China" principle, which asserts that the Chinese communist government is the sole legitimate ruler of both the mainland and Taiwan.

In the early 1990s, Beijing showed flexibility in the meaning of "one China" when both sides of the Strait started ground-breaking talks.

In 1992, Taipei and Beijing agreed that both sides could disagree on the meaning of "one China," as long as both sides recognized that there was only one China.

But Chen and his pro-independence Democratic Progressive Party have refused to accept "one China."

"The fact is that both sides of the Taiwan Strait reached an agreement on 'one China' (in 1992) but have not reached a conclusion on "different interpretations," Chen said in his speech at Inotera.

Inotera is affiliated with Nanya Technology Corporation, which belongs to the Formosa Plastics Group, headed by Wang Yung-ching.

Wang, who has been outspoken against the DPP government's slow pace in opening cross-strait links, was also present when Chen made the speech at Inotera.

Wang later declined reporters' request for comments on Chen's speech.

In his speech, Chen also took issue with Ma's call for turning Taiwan into a "free trade zone."

The president said Taiwan is a "sovereign and independent" country, and not a local government or special administrative region of any other country.

"The 'one China market,' coupled with the 'free trade zone,' would downgrade Taiwan into an outlying free trade zone of China," the president said.

But the opposition camp said Chen's criticism for the "common market" proposal was simply a repeat of his old trick of accusing enemies of being collaborators of the communists.