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.

I think that my emergence as a leader is closely related to the development of Taiwan's democracy. Taiwan's democracy was a gradual development. It was done from the bottom up. Therefore a lot of the more successful political leaders come from civil society, those that are closer to the grass-roots level of the public.

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.

Taiwan is the Republic of China, the Republic of China is Taiwan.

If China do take economic measures to apply pressure to Taiwan, they will have to think about the price that they are going to pay. Because the surrounding countries will be looking very carefully at what measures China will take against Taiwan.

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.

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.