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

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.

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.

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

People feel anxious, especially when we have to wonder whether the president, Taiwan's democratically elected president, will be addressed as president. If he cannot even defend his own title, what can he defend for us?

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.