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President Chen Shui-bian, who has been criticized for aggravating relations with China by promoting policies to formalize Taiwan's de facto independence from the mainland, resigned as chairman of the ruling Democratic Progressive Party, or DPP, immediately after the extent of the defeat became clear.

"I should shoulder all responsibilities," Chen said. "I feel really apologetic and shamed."

His resignation does not affect his status as president.

With all votes counted, the official Central Election Commission said the Nationalists had won 81 seats in the 113-seat Legislature, against only 27 for the DPP, with four going to Nationalist-leaning independents, and one to a Nationalist satellite party.