China on Sunday urged local authorities to help find jobs for hundreds of thousands of migrant workers reported to be flooding home after being forced out of work by the global financial crisis.

The government warned provincial authorities that the plight of migrant workers was a "pressing" issue as domestic companies are suffering from the crisis, said a statement published on the cabinet's website.

State media have reported in recent weeks that factory closures have sent large numbers of migrant workers returning to their homes in the countryside from the cities where they had flocked to find jobs.

The official Xinhua news agency said about 300,000 people have returned to the eastern province of Jiangxi, 400,000 to Anhui province and 700,000 to Hubei, as the New Year and spring holidays approach.

There are about 210 million migrant workers in China, according to official figures.

"Governments should step up supervision on wage payment to ensure workers receive their wages in time, create more job opportunities and provide vocational training," the statement said.

It urged banks to offer favourable terms to new businesses and said local governments should promote small and mid-size companies to absorb the flood of migrant workers and support their families.

China says will come to aid Taiwan's aid amid crisis

China will come to Taiwan's aid if the impact of the global economic crisis worsens, a top Chinese official was quoted saying on Saturday in the latest gesture of goodwill between the two longtime rivals.

Jia Qinglin, the fourth-ranking leader in China's political hierarchy, made the vow during an economic forum in Shanghai between the two sides, Xinhua news agency said.

"If the world economic situation continues to worsen and the Taiwan side asks for help in resolving economic difficulties, the mainland is willing to do its utmost to offer assistance," Jia was quoted as telling the gathering.

"We should get through the difficulties hand in hand."

Jia's offer comes after the two sides last week inaugurated direct daily flights and postal and shipping services in a historic move hailed by both sides as cementing a new era in warming ties.

Relations have improved rapidly since the election in March of Taiwan President Ma Ying-jeou, who has promised closer ties.

His election ended eight years of rule by Chen Shui-bian, whose independence rhetoric inflamed China.

Airlines from the two sides will fly more than 100 flights a week under the transportation arrangement launched Monday, linking four Taiwanese and 12 Chinese cities.

Meanwhile, ships have begun sailing directly across the 160-kilometre (100-mile) Taiwan Strait and post was sent directly for the first time.

Previously, planes usually had to fly through Hong Kong or Macau airspace, while cargo ships generally detoured through Japanese waters.

Direct transport was suspended after the two sides split in 1949 following a civil war.

China still regards Taiwan as a renegade province that must eventually come back into Beijing's political fold, by force if necessary, although Ma's election has cooled the atmosphere dramatically.

Chen, who has since been indicted for corruption, had refused the transport links, wary of getting too close to China.

But following Ma's election, top officials from both sides met in Beijing in June for the first direct dialogue between the two parties in 10 years and paving the way for a flurry of steps drawing the two sides closer together.