Taiwan President Ma Ying-jeou on Friday renewed his pledge not to seek formal independence for the island and to work towards improving ties with former rival China.
"At the present stage any radical political choice, whether it be unification or independence, would trigger serious confrontation and turbulence," Ma said in his New Year's address.
"I insist on maintaining the situation of 'no unification, no independence, no use of force' to promote cross-strait exchanges and cooperation … for peaceful developments in the Taiwan Strait," he said.
Taiwan and China have been governed separately since 1949, but China still views the self-ruled island as part of its territory awaiting reunification, by force if necessary.
Ties were strained under Ma's predecessor Chen Shui-bian, who often angered Beijing with his policies pushing for the island's independence from China, but have improved since Ma took office in 2008.
Taiwan is keen to sign a sweeping trade pact, known as the Economic Cooperation Framework Agreement (ECFA) with China to help boost its export-dependent economy.
Ma stressed that Taiwan needs the pact amid stronger international competition after China and countries in the Association of Southeast Asian Nations (ASEAN) bloc established the world's biggest free trade area Friday.
Ma said he hoped any pact with China would include a clause to lower tariffs on Taiwanese exports to China "so that we will not be marginalised in the export market".
Taiwan's government says the pact, which calls for the removal of barriers to ensure the smooth flow of goods and personnel between them, could lift economic growth by one percentage point.
But the opposition warns that it would cost 1.6 million jobs and imperil the island's separate status.
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