TAIPEI - Taiwan leader Ma Ying-jeou on Thursday said people in Taiwan and the Chinese mainland all belong to the Chinese nation and the relation between the two sides is not an international one.

After five years of endeavor, the Taiwan Straits has become the most peaceful and prosperous channel in Asia, Ma said in an open speech.

Based on the "1992 Consensus," the two sides of the Strait have signed 19 agreements over the last five years, and cross-Straits exchanges are being carried out through direct air and shipping links, tourism and cooperation in judicial and economic fields, he said.

Ma urged progress on the Taiwan-based Straits Exchange Foundation and its mainland counterpart Association for Relations Across the Taiwan Straits to establish representative offices on each other's side, saying that this would improve services for the public and bring cross-Straits cooperation to a new higher level.

In his speech, Ma said the cross-Straits agreement on service trade signed in June will boost the service industry in the island, enable Taiwan to engage in regional economic integration and create more jobs for people in Taiwan.

To illustrate this point, Ma cited cases of several business owners in Taiwan who support the service trade agreement.

Ma said Taiwan's economy is facing challenges and the island should develop into a provider of key components and precision equipment.

Innovations in the service industry are also needed and Taiwan should be more vigorous in reaching out to the global market.

He said facing up to competition is the only solution in the island's economic structure transformation.