Taiwan president gives up party post

TAIWAN, Dec 2 (Reuters):  Taiwan's president on Tuesday said he was stepping down as chairman of the ruling party in a widely expected move that comes after the Kuomintang was trounced in local elections on the weekend.

President Ma Ying-jeou's resignation reflects the crisis that has gripped the KMT, which lost key cities in northern and central Taiwan in the polls, despite pushing policies that ushered in detente and deeper economic ties with China, which views the island as a breakaway province.

Ma's resignation from the party post does not affect his position as president. He is serving his second, and final, four-year term as president, which ends in 2016.

But the pace of improvement in cross-strait relations could slow next year as Ma is not likely be able to effectively steer policy within the ruling party and in government.

"This is the worst crisis for the KMT since we fled to Taiwan," said Li-Keng Kuei-fong, a member of KMT's central committee.