Taiwan's biggest opposition group, the China-friendly Kuomintang, on Saturday picked as its chief former Vice President Wu Den-yih, an advocate of improved and stable cross-strait relations.

In his acceptance speech, Wu, 69, said the party would need to implement measures to boost the economy such as by increasing incomes and implementing pension reforms.

The Kuomintang once governed all of China but fled to Taiwan in 1949 after being defeated in a civil war with China's communists.