Taiwan's new President Tsai Ing-wen (L) and Vice President Chen Chien-jen (R) wave during her inauguration ceremony in Taipei on May 20, 2016.

Taiwan's new president Tsai Ing-wen called for "positive dialogue" with China in her much-anticipated inauguration speech Friday, striking a conciliatory tone in the face of an increasingly hostile Beijing.

"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.