http://news.yahoo.com/s/afp/20080112/wl ... F1I24Bxg8FTAIPEI (AFP) - Taiwan's opposition nationalists -- who favour closer ties with China -- on Saturday won a landslide victory in parliamentary elections, dealing a devastating blow to the party of President Chen Shui-bian.
The win gives the nationalist Kuomintang (KMT) a major boost ahead of March polls to choose a successor to Chen, whose drive to assert Taiwan's independent identity has irked Beijing and the United States, one of Taipei's key allies.
"I am willing to shoulder all of the responsibility," a stern-faced Chen told a press conference, announcing he would resign as chairman of his Democratic Progressive Party (DPP), effective immediately.
"I feel very sorry and I feel shame for this election result," he said, calling the result the "worst setback" in his party's history.
The KMT and its smaller allies won 86 of 113 seats in the new streamlined parliament, while the DPP only won 27, according to final official results released by the central election commission.
"It is clear that people are yearning for change, after eight years of suffering," KMT presidential candidate and frontrunner Ma Ying-jeou told a press conference.
Hundreds of supporters cheered as Ma spoke at party headquarters, popping open champagne bottles, singing songs and waving party flags, as others gathered outside set off firecrackers.
Ma pledged that if elected in two months, he would work to improve relations with China, allowing mainland tourists to visit Taiwan and reinstating direct postal, commerce and transportation links that were cut off six decades ago.
Ma, who leads the DPP's Frank Hsieh in opinion polls ahead of the March 22 presidential contest, also said he would "push for a peace accord" with Beijing, which still regards Taiwan as part of its territory.
Chen has been blamed for both raising tensions with China and failing to revive Taiwan's sluggish tech-heavy economy -- two issues that have dominated both the parliamentary campaign and the race for the presidency.
Chen, who was first elected in 2000 and re-elected four years later by a narrow margin, is not eligible to stand for a third term.
The KMT, which held a slim majority with its allies in the outgoing parliament, says pursuing warmer ties with China will help the island's economy by opening the door to new jobs and investment.
Chen, who campaigned tirelessly for his DPP, argued that Taiwan's separate identity is vital to its democracy, and warned voters that the KMT would sell Taiwan out to China if returned to power.
The KMT ruled here from 1949, when Taiwan and China split at the end of a civil war between the nationalists and Mao Zedong's communists, until Chen took office in 2000.
A win for the KMT in both the legislative and presidential elections could end years of political gridlock on this island of 23 million people.
The DPP did not come close to meeting Chen's target of winning 50 seats in the new parliament, halved from its current 225 seats in a bid to improve efficiency.
Both parties were dogged by allegations of corruption in recent months, with Chen's wife on trial for misuse of public funds, his son-in-law convicted of insider trading and his Vice-President Annette Lu indicted for graft.
Ma was last month cleared of graft and breach of trust charges, clearing the way for him to run for office, but prosecutors have decided to appeal the case to the Supreme Court.
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