Taiwan seeks "peaceful coexistence" with China with free and unrestricted interaction but the island will be democratic for generations to come, President Tsai Ing-wen said in her last national day speech Tuesday.

Taiwan, claimed by China as its own territory, has come under increasing military and political pressure from Beijing, including two major sets of Chinese war games near the island since August of last year, heightening fears of a conflict that would have global ramifications.

Tsai, who cannot stand again as president at elections in January after two terms in office, has repeatedly offered talks with China, which has rejected them as it views her as a separatist.