New Taiwan President Lai Ching-te on Monday hailed the arrival of a "glorious era" for the island's democracy, as he called on China to cease political and military intimidation.

In an inauguration speech, Lai also directly addressed the threat of war following years of growing pressure from China's to bring Taiwan under mainland rule.

Lai said a "glorious era of Taiwan's democracy has arrived" and thanked citizens for "refusing to be swayed by external forces, for resolutely defending democracy".

"In face of the many threats and attempts of infiltration we must demonstrate our resolution to defend our nation and we must also raise our defence awareness and strengthen our legal framework for national security," Lai said.

A staunch defender of Taiwan's sovereignty, Lai has been described by Beijing as a "dangerous separatist" for his past comments on Taiwan's independence -- rhetoric that he has moderated in recent years.

On Monday, he vowed his government will "neither yield nor provoke, and (will) maintain the status quo" -- a balance that preserves Taiwan's sovereignty while not declaring formal independence.

"I also want to call on China to cease their political and military intimidation against Taiwan," Lai said.

He urged Beijing to "share with Taiwan the global responsibility of maintaining peace and stability in the Taiwan Strait... and ensure the world is free from the fear of war."

Lai is expected to boost defence spending and strengthen ties with Washington during his four-year term in a bid to deter China from seizing the island.

China considers Taiwan as part of its territory and has long threatened to use force to bring the island under its control.

Domestically, Lai also faces another challenge after his Democratic Progressive Party (DPP) lost its majority in the legislature in the January elections, meaning it will be hard for him to push through his policies.

As he took office Monday, Chinese state media reported Beijing imposed sanctions on three US defence companies over their sales of weapons to Taipei.

US Secretary of State Antony Blinken congratulated Lai, saying he was looking forward to Washington and Taipei deepening ties and maintaining "peace and stability across the Taiwan Strait".