The legislative result has left analysts predicting the Guomindang will re-take the presidency in March elections and steer Taiwan closer to mainland China.
Taiwan President Chen Shui-bian has taken full responsibility for the weekend's loss and has also resigned as chairman of the Democratic Progressive Party (DPP). President Chen Shui-bian's Democratic Progressive Party won only 27 seats in Taiwan's new 113 seat assembly.
The KMT has promised closer ties to China will boost Taiwan's economy. The DPP is warning that the Opposition will sell out Taiwan's interests to China, but most voters clearly do not seem to believe that.