Overall, Ma seems to be sounding a cautious note, perhaps due to the positioning of his domestic opposition (bolded at the end):

BBC NEWS | World | Asia-Pacific | Taiwan victor promises China ties

On Saturday, Mr Ma said economic normalisation would take priority over concluding a peace treaty, which he said would be conditional on the removal of what Taiwan says are some 1,000 missiles aimed at the island.

In Sunday's further comments, he acknowledged that the issue of sovereignty was the most difficult problem affecting bilateral relations, adding that mutual recognition was "out of the question".

Instead, he proposed a middle road of "mutual non-denial" - "we will not deny their existence but we cannot recognise their sovereignty" over Taiwan, he said.

Taiwan ballot boosts links with mainland | World news | The Observer

Ma has promised to boost investment and trade ties, establish regular scheduled flights across the Taiwan strait and to negotiate a peace treaty between the two sides. With more than 99 per cent of the vote counted, Ma, a former mayor of Taipei, secured 58 per cent, while Hsieh lagged far behind with 42 per cent. Turnout was about 76 per cent.

Television images from his campaign headquarters showed jubilant supporters waving flags, cheering and setting off celebratory fireworks. In contrast to the tense, tightly fought election in 2004, the losing candidate conceded defeat relatively early.

The result is likely to prompt a change of tack in Taipei's policy towards Beijing. Ma has promised a break with the pro-independence stance of outgoing President Chen Shui-bian, who was detested by the mainland's Communist leadership. Chen was unable to stand again after serving the maximum two four-year terms. Ma has proposed a peace treaty that would demilitarise the strait, and said he would ease restrictions on investments in the mainland.

Opponents say Ma will concede too much of the self-ruled island's autonomy and democracy by cosying up to the authoritarian administration in Beijing.