Taiwan wants to have a dialogue with China but cannot accept its proposal for "one country, two systems", president Tsai Ing-wen said on Wednesday after being inaugurated for her second and final term in office.

"Here, I want to reiterate the words 'peace, parity, democracy, and dialogue'. We will not accept the Beijing authorities' use of 'one country, two systems' to downgrade Taiwan and undermine the cross-strait status quo.