Commemorating the founding of the Republic of China, Taiwan President Ma Ying-jeou has pledged greater efforts to fix the island's economy, now limping along at about a 2 percent annual growth rate.

Ma's speech Wednesday offered a new strategy to deal with the economic challenge, including tightening commercial links with China, the signature plank of his 4 ½ year presidency.

Over the past several months, Taiwan's high-tech economy has been battered by slowing demand in Europe, North America and China, its main export market.

Founded after the 1911 revolution inspired by Sun Yat-sen, the Republic of China retreated to Taiwan in 1949, when Communist icon Mao Zedong established the People's Republic of China on the mainland.

Diplomatically isolated, it remains a key player in the global IT supply chain.