Chinese Kuomintang (KMT) Party Honorary Chairman Lien Chan said Sunday that the 15 new favorable policies announced by the mainland on Saturday pointed out a new direction for the future cross-Strait economic and trade development.

Lien made the remark when meeting with Hu Jintao, General Secretary of the Central Committee of the Communist Party of China (CPC) on Sunday.

He said peace was the basis for cross-Strait prosperity and development. Compatriots from both sides of the Taiwan Strait should overcome challenges and continue to pursue peace, so as to create economic prosperity on both sides of the Taiwan Strait, he said.