Taiwan has sworn-in Tsai Ing-wen as its first female President, who took the oath of office at the presidential palace in Taipei after winning a landslide victory in January.

Key points: Tsai promises 'positive dialogue' with China in inaugural speech

Tsai promises 'positive dialogue' with China in inaugural speech US looks forward to strengthened ties with Taiwan

US looks forward to strengthened ties with Taiwan Observers unsure whether Tsai will compromise on 'one China' issue

Ms Tsai and her independence-leaning Democratic Progressive Party (DPP), in defeating the Kuomintang (KMT), ended an eight-year rapprochement with Beijing under outgoing president Ma Ying-jeou.

Voters felt Mr Ma had moved too close to China, which still sees self-ruling Taiwan as part of its territory awaiting reunification.

Around 30,000 people gathered at Taipei's presidential palace for President Tsai's swearing-in and inauguration speech on Friday morning, in which she called for "positive dialogue" with China.

"The two governing parties across the strait must set aside the baggage of history, and engage in positive dialogue, for the benefit of the people on both sides," she said in the speech outside the presidential office in Taipei after being sworn in.

"Cross-strait relations have become an integral part of building regional peace and collective security ... in this process, Taiwan will be a 'staunch guardian of peace' that actively participates and is never absent."

At the ceremony, choirs performed "Ilha Formosa", a poetic tribute to Taiwan banned in 1979 when the KMT ruled under martial law because it had been adopted as an anthem by opposition groups.

Meanwhile, the United States' diplomatic representative on the island "congratulated President Tsai Ing-wen on her inauguration" in a statement.

"We look forward to working with the new administration, as well as with all of Taiwan's political parties and civil society groups, to further strengthen the ties between the people of the United States and Taiwan," it added.

Tsai unlikely to show compromise on 'one China' issue

Although in the past Ms Tsai has pledged to maintain the "status quo" with Beijing, observers say she is highly unlikely to show any sign of compromise on the "one China" issue — which China aims to enforce on the island, but the DPP has never recognised.

"Tsai has said repeatedly cross-strait ties will be based on democratic principle and Taiwan's public opinion, so it would be difficult for her to say the things China wants to hear," said Lai I-chung, deputy director of Taiwan Thinktank and a former director of the DPP's China affairs division.

"In the past China represented opportunities, but now it represents risks."

Voters, turning from the KMT's closer ties with China at the poll, want President Tsai to follow through on vows to revive Taiwan's flagging economy and be reassured that the island's sovereignty will remain secure.

The vast majority of Taiwanese want peaceful relations with China, but not at the expense of their cherished democratic culture.

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AFP/Reuters