China is still our largest trading partner; however, complementarity between our economies is decreasing. We had the ability to organize a manufacturing process, and then we moved our manufacturing capability to China to make use of their labor pool.

I am not clear what the U.S. means when they use the term "entity." For us here in Taiwan, we believe that we are a country, a democratic country.

Different generations and people of different ethnic origins have different views on China. But they all agree on one thing. That is democracy.

I think that Chairman Xi Jinping's courage tackling corruption is an important matter in the development of Chinese society. I also look forward to him showing a bit more flexibility in dealing with cross-strait relations. I hope that he can appreciate that Taiwan is a democratic society in which the leader has to follow the will of the people.

I think Taiwan's economy needs an overall structural readjustment. Our new model focuses on innovation and research. This is different from our growth model in the past, which was centered on the manufacturing industry.

For years, Taiwan has been dominated politically by a single party, the Kuomintang. People now want the place to be more democratic. They want to place more emphasis on human rights and transparency in terms of government decision-making. This is different from the way the government conducted business in the days when this was pretty much an authoritarian place.

We have always had diverse channels of communication across the strait. These include not just official communications but also people-to-people contacts... There are differences between the positions of the two sides of the strait. In Taiwan, we have done our best to minimize that gap. I believe that the Chinese realize the goodwill we have put forth at the inauguration.