Taiwan in 2004: Elections, Referenda, and Other Democratic Challenges [Updated January 10, 2005] [open pdf - 42KB]
From the Summary: "In a low voter turnout in legislative elections on December 11, 2004, the opposition Nationalist Party (KMT) increased its legislative majority against the ruling Democratic Progressive Party (DPP). This means that DPP President Chen Shui-bian, who was reelected to a second term on March 20, 2004, again will not be able to count on legislative support for his policies in his second and final term. In both the presidential and legislative election campaigns, Chen emphasized gaining a separate international identity for Taiwan -- an emphasis to which Beijing strenuously objected as dangerously close to declaring Taiwan independence from China. While Chen's strategy appeared to gain the DPP electoral momentum in March, it may have had the opposite electoral effect in December. In response to his party's defeat at the polls, Chen resigned as DPP party chair on December 15, 2004. He is expected to have to moderate his policies and move closer to the political center for the rest of his term in order to regain public support and in an effort to ensure legislative support for his economic and other policy initiatives. Any move to dial down pro-independence rhetoric could ease tensions with Beijing and the concerns of U.S. policymakers."
CRS Report for Congress, RS21770