Taiwan's leader says he will not authorize retired military generals to negotiate a mutual trust agreement with the Chinese military.
Local media have reported retired Taiwanese air force general Hsia Ying-chou told a gathering in Beijing this week that Taiwan's armed forces will no longer fight the Chinese. Hsia quickly denied the report.
Ma Ying-jeou said on Thursday that negotiations with China will be limited to economic matters for the time being.
Taiwan's ruling Nationalist Party is engaging China in economic matters but denies opposition accusations it will compromise with Beijing politically.
Taiwan and China split amid civil war in 1949. China still claims the island as its own and refuses to renounce the use of force against it.