Taiwan President Tsai Ing-wen kicked off her second term by doubling down on her strategy for boosting the island democracy’s ability to resist coercion from China, pledging to further revamp the economy, strengthen the military and deepen ties with friendly countries.

In her inaugural address on Wednesday, Ms. Tsai reiterated Taiwan’s rejection of China’s efforts to assimilate the island, which Beijing claims as its territory. But she offered to work with Chinese leader Xi Jinping to stabilize relations in ways that respect…



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