Tsai quits as party chair after polls setback

TAIPEI, Nov 25 (Agencies): A massive defeat for Taiwan's ruling party in mid-term polls on Saturday was seen as an indictment of President Tsai Ing-wen and called into question her approach to China, as well as unpopular domestic reforms.

Tsai has pitched herself and her party as champions for democracy in the face of rising pressure from China, which sees Taiwan as part of its territory to be reunified.

But some voters say worsening relations with Beijing have harmed business, while others believe she has been too conciliatory.

Cuts to pensions and a reduction in public holidays have compounded frustrations over a stagnant economy where salaries have not kept up with the rise in cost of living.

Taiwan President Tsai Ing-wen resigned as chairwoman of the ruling pro-independence Democratic Progressive Party or DPP after it suffered a major electoral defeat on Saturday, losing two of the island's most important city posts in mayoral elections.

The results of the polls, being held just over a year before Taiwan's next presidential election, are likely to please China, which claims self-ruled and proudly democratic Taiwan as its own and has ramped up pressure on Tsai and her administration since she took office in 2016.Analysts agree domestic issues were the main reason behind voters' punishment of Tsai's ruling Democratic Progressive Party (DPP), which saw its key seats more than halved while the Beijing-friendly opposition Kuomintang more than doubled their share.

However, concern that business is being dented by deteriorating relations with Beijing also played a part, including a dramatic drop in tourists from China since Tsai took office in 2016.

Beijing has sought to punish Tsai and her pro-independence leaning party by ramping up military drills, poaching allies and successfully persuading international businesses including airlines to list the island as part of China on their websites.

With pressure from Beijing at play in the vote result, analysts say Tsai will need to recalibrate her policy.

But while voters want assurances of stability and economic prosperity, they will not want Taiwan to move too close to Beijing - the previous KMT government was ousted after widespread public concerns over its rapprochement with China.