Over past period, we have handled relations with China very carefully. We do not take provocative measures, we make sure that there are no surprises, and we hope that through channels of communication, we can gradually build up trust.

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.

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.

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 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.

Over past period, we have handled relations with China very carefully. We do not take provocative measures, we make sure that there are no surprises, and we hope that through channels of communication, we can gradually build up trust.

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