# Presidency of Chen Shui-bian

The presidency of Chen Shui-bian began on 20 May 2000, when Chen Shui-bian was sworn in as 10th president of the Republic of China and the fifth president of the republic since it became established on the island of Taiwan, succeeding Lee Teng-hui. Chen and his running mate Annette Lu, both of the Democratic Progressive Party (DPP), won the 2000 presidential election with a slight plurality. The election ended more than half a century of Kuomintang (KMT) rule on the island, during which it had governed as a one-party state since the retreat of the government from the Chinese mainland during the closing stages of the Chinese Civil War in 1949. This was also the first time in Chinese history that a ruling political party peacefully transferred power to an opposition party under a democratic system. Chen and Lu were sworn into office on 20 May 2000.

## Presidency, 2000–2008
### First term

In an election similar to Taipei's in 1994, Chen won the 2000 presidential election on 18 March 2000, with 39% of the vote as a result of a split of factions within the Kuomintang, when James Soong ran for the presidency as an independent against the party nominee Lien Chan.
Lacking a clear mandate and inheriting a bureaucracy largely loyal to the KMT, Chen tried to reach out to his opposition. He appointed the KMT conservative mainlander Tang Fei, a former general and the incumbent defense minister, as his first premier. Only about half of Chen's original cabinet were DPP members, as few DPP politicians had risen above the local level. Although a supporter of Taiwan independence, Chen moderated his stance during his campaign and pledged the Four Noes and One Without in his inaugural address—that as long as the People's Republic of China has no intention to use military force against Taiwan, he would not declare independence nor change the national symbols of the Republic of China. He also promised to be, "president of all the people" and resigned his chairmanship from the DPP. His approval rating reached around 70%.
Chen's administration ran into many problems, and its policies were constantly blocked by the pan-Blue coalition-controlled legislature. The stock market lost over half its value within a year and unemployment reached 4.5% in part because of the Asian stock market crash. While Chen's detractors blamed Chen's poor leadership for the economic crisis, the administration blamed the legislature for blocking its relief efforts.
More troublesome for Chen was the political showdown over the construction of the Number Four Nuclear Power Facility. This multibillion-dollar project in Gongliao District was already one-third completed and favored by the pro-business KMT as a means of avoiding an energy shortage. However, the environmentalist DPP strongly objected to the expansion of nuclear power. Premier Tang had threatened to resign if the project were canceled, and Chen accepted his resignation on 3 October 2000, only four and a half months after both had taken office. Chen appointed his political ally Chang Chun-hsiung as Tang's replacement. On 27 October, Chang announced that the government would halt construction. But less than an hour earlier, Chen had met with Lien Chan to reconcile differences. Lien had asked Chen to leave the matter for the Legislative Yuan to decide and Chen seemed receptive to the suggestion. When Chang's announcement came out, Lien was furious and the KMT began an effort to recall the president. The Council of Grand Justices intervened and declared that it was the legislature and not the cabinet that had the power to decide on the issue. This was widely seen as the end of Chen's attempts to face the pan-Blue groups head on. By the end of his first year in office, Chen's approval ratings had dropped to 25%.
During the summer of 2001, Chen flew to Los Angeles, Houston, and New York City, where he met with members of the U.S. Congress. The mayor of Houston presented Chen with a key to the city and gave him cowboy clothing. His trip to New York was a first for a head of state from Taiwan as there was unwritten agreement between the US and China that no head of state from Taiwan would be permitted to visit either New York or Washington, D.C.
After his first year in office, Chen moved away from sending conciliatory gestures. In the summer of 2002, Chen again became the chairman of the DPP. During his tenure, images of Chiang Kai-shek and Chiang Ching-kuo disappeared from public buildings. The word "TAIWAN" is now printed on new ROC passports. Also continuing a trend from the previous administration, the Education Ministry revised the school curriculum to be more Taiwan-centered. Government websites have also tended to promote the notion that China is synonymous with the PRC instead of the ROC as was mandated by the KMT. The "Free China Review" was renamed the Taiwan Review and Who's Who in the ROC was renamed Who's Who in Taiwan. In January 2003, a new Taiwan-Tibet Exchange Foundation was formed but the Cabinet-level Mongolian and Tibetan Affairs Commission was not abolished. Though Chen has proposed talks with the PRC, relations remain deadlocked as Chen refused to pledge to the One-China policy, as required by the PRC for talks to begin. Such a pledge seemed unlikely for Chen since there remained strong opposition within his own party. Despite these symbolic gestures, Chen moved away from "no haste, be patient" policy and opened the three mini links.

#### Re-election campaign

In late 2003, he signed a controversial referendum bill, which he had supported but was heavily watered down by the pan-Blue majority legislature. One concession that the legislature made was to include a provision for an emergency defensive referendum and during the legislative debates it was widely believed that this clause would only be invoked if Taiwan was under imminent threat of attack from China as has been so often threatened. Within a day of the passage of the referendum bill, Chen stated his intention to invoke this provision, citing PRC's over 450 missiles aimed directly at the Taiwanese. Pan-Blue believed that his bill was only intended to benefit Chen in the coming election, as whether PRC removes the missiles would not be pressured or decided by referendum result.
In October 2003, Chen flew to New York City for a second time. At the Waldorf-Astoria Hotel, he was presented with the Human Rights Award by the International League of Human Rights. In the subsequent leg of the trip to Panama, he met with US Secretary of State Colin Powell and shook hands with him. This high-profile trip raised Chen's standing in opinion polls ahead of his opponent Lien Chan for the first time at 35%, according to Agence France-Presse.
His use of the referendum in combination with his talk of a new constitution lead many among his reunification critics to believe that he would attempt to achieve Taiwan independence in his second term by invoking a referendum to create a new constitution that would formally separate Taiwan from any interpretation of China. This caused the government of the United States to follow the lead of Chen's political critics and issue a rare rebuke of Chen's actions.
Chen was shot in the stomach while campaigning in the city of Tainan on Friday, 19 March 2004, the day before polls opened on Saturday. His vice-president Annette Lu was also reportedly shot in the leg in the same incident. The following day, Chen narrowly won the election with a margin of less than 30,000 votes out of 12.9 million votes counted. Both of his referendum proposals were rejected due to insufficient turnout, in part by the pan-Blue boycott. Those that did vote for the referendum overwhelmingly favored it. Pan-Blue candidate Lien Chan refused to concede and sued both for a recount and for a nullification of the outcome while supporters held a week-long protest led by the pan-Blues front of the presidential office in Taipei. He also claimed that the shooting was staged by Chen to win sympathy votes.
Throughout the election, Chen planned to hold a referendum in 2006 on a new constitution to be enacted upon the accession of the 12th-term president in May 2008. After the election, he sought to reassure critics and moderate supporters that the new constitution would not address the issue of sovereignty, and that the current constitution was in need of comprehensive reform after more than a decade of patchwork revision.

### Second term

On 20 May 2004, Chen was sworn in for his second term as president amid continued mass protests by the pan-blue alliance over the validity of his re-election. Having heard protests from pro-independence figures in Taiwan, he did not explicitly re-state the Four Noes and One Without but did state that he reaffirmed the commitments made in his first inaugural. He defended his proposals to change the constitution, but asked for constitutional reform to be undertaken through existing procedures instead of calling for a referendum for an entirely new constitution which was proposed by former president Lee Teng-hui. This would require approval by a three-fourths majority of the National Assembly which could authorize a referendum. This has two major implications. First, by going through existing constitutional amendment procedures, this has the symbolic effect of maintaining continuity with the existing constitution which was originally written in China. Second, this has the practical effect of requiring the Chen administration to get the consent of the opposition pan-Blue coalition to pass any amendments, and while the opposition is willing to consider constitutional reforms that would increase governmental efficiency, they are unlikely to support anything that would imply a de jure declaration of independence.
However, even these seemingly conciliatory gestures did not quell unease by his critics at his election. Some have pointed out that he qualified his statements on the constitution with the statement that this is a personal suggestion. Furthermore, it is widely believed in Taiwan that some of these gestures were essentially forced on him again by pressure from the United States and the PRC. The PRC has stated many times that it cares little about what Chen says, but will watch closely in the next few months to see what he does, a standard sentence that Communist China continues to quote.
Three days before Chen's inauguration, the Taiwan Affairs Office of the PRC issued what has become known as the May 17 Declaration. In that declaration, China accused Chen of continuing with a creep toward independence, having merely paid lip service to his commitments in his first term of office, and reiterated that there would be consequences if Chen did not halt policies toward Taiwan independence, but at the same time offered major concessions if Chen would accept the One China Principle.
In late 2004, in effort to maintain the balance of power in the region, Chen began eagerly pushing for a US$18 billion arms purchase from the United States, but the Pan-Blue Coalition repeatedly blocked the deal in the legislature. Criticism has been made of this, citing contradictory arguments used, such as that the weapons were not what Taiwan needed, or that the weapons were a good idea but too expensive. By late 2006, the KMT had signalled it would support some of the arms sale being approved, but failed to pass a revised arms bill by the end of the legislative session in early 2007, despite promises by then KMT chairman, Ma Ying-jeou, to do that.
Chen announced on 5 December that state-owned or private enterprises and foreign offices bearing the name "China", such as China Airlines, the China Steel Corporation, and Chinese Petroleum Corporation, would be renamed to bear the name "Taiwan." On 14 December 2004, following the failure of the Pan-Green coalition to gain a majority of seats in the 2004 ROC legislative election (as many had expected to occur), Chen resigned as chairman of the DPP. This dashed hopes that the stalemate that plagued Chen's first term would end.
In 2005 Chen became the first ROC president to visit Europe, when he attended the funeral of Pope John Paul II in the Vatican City (the Holy See continues to maintain diplomatic relations with the ROC). In order to shore up diplomatic support, it is common for the ROC president to visit the ROC's remaining diplomatic allies; however, past presidents had been prevented from visiting the Vatican because such a visit would require passage through Italy, which maintains relations with the PRC. Under agreement with the Vatican, Italy permitted all guests to the funeral passage without hindrance and Chen was received at the airport in his capacity as a foreign head of state. In this religious ceremony where U.S. president George W. Bush greeted Iranian president Khatami, Chen did not seem to attempt to a high profile of himself by reaching out to other heads of states such as Bush or British prime minister Tony Blair. Chen was named one of the Time 100 for 2005.
Later in the year, Chen traveled to Miami in stopover for a forum in the Caribbean. He met with members of the U.S. Congress through video conference and was invited to visit Washington, D.C. On his way back, he was originally scheduled to fly through San Francisco. However, he changed course and stopped-over at the United Arab Emirates. The head of state greeted him and hosted a formal state dinner, infuriating the Chinese officials. Chen made his way back after making a stopover at Jakarta. His request for a pitstop at Singapore was denied; authorities cited weather problems.
On 28 February, 2006, Chen announced that the National Unification Council, which was set up in 1990 to create guidelines for unification with China if it adopted democracy, would "cease to function". He took care to use this phrase rather than "abolish" because he had promised during his 2000 campaign that he would not abolish the council or its guidelines. Adam Ereli, deputy spokesman of the US State Department, issued a statement on 2 March 2006, that the understanding of the United States was that the difference between "abolish" and "ceasing activity" implied no change in the status quo.
On 3 May 2006, Chen canceled plans to pass through the United States on his way to Latin America. He was hoping to stop by either San Francisco or New York City to refuel and stay overnight, but the US refused his request instead limiting him to a brief refuelling stopover in Anchorage, Alaska, where Chen would not be allowed to step off the plane. Chen and Taiwan saw this as a snub and led to Chen's cancellation. The trip to Latin America continued, however, without a US stopover. The US State Department claimed that the Alaska stopover offer was consistent with its previous accommodations. However, former Taiwan president Lee Teng-hui was granted a visit to Cornell University eleven years earlier. More recently, in addition, Taiwan's leaders have in general been granted permission to stopover in the United States for brief periods before continuing on to other countries. This recent American stance is interpreted by Taiwan to be an expression of the increasing irritation the United States feels towards Taiwan and Chen's seemingly pro-independence gestures. Chen attended the inauguration of Óscar Arias, the president of Costa Rica, one of the few countries that recognized the Republic of China at that time. Laura Bush was also present to represent U.S. president George W. Bush. Chen seized the opportunity, approached her and shook her hands, while Chen's aide produced a camera immediately for an impromptu photo-op. Chen's supporters saw this act as a step forward in Taiwan's struggle for diplomatic recognition, while his detractors claimed that it was a grave breach of international etiquette and put Taiwan to shame.
On 12 May 2007, Premier Su Tseng-Chang resigned his position, and Chen soon appointed Chang Chun-hsiung to fill the vacant premiership. During Chen's tenure, beginning in 2000, the country has seen six different premiers in the past seven years. During the same period of time, from 2000 onward, the Democratic Progressive Party has also seen seven different chairmen.
Chen's tenure as president expired on 20 May 2008, yielding to successor Ma Ying-Jeou. From his election to his first term to his last days as president, Chen's approval ratings fell from 79% to just 21%.

## Corruption scandals

In May 2006, his approval rating fell to around 20% after a series of scandals centered on his wife and son-in-law. Support from his own party had also dropped with a few prominent members, such as Shih Ming-teh, calling for his resignation in the Million Voices Against Corruption, President Chen Must Go campaign. On 24 May 2006, his son-in-law, Chao Chien-ming, was taken into custody by the Taipei police on charges of insider trading and embezzlement by the opposition party. This was a setback for the Chen Shui-bian administration. In related charges, there were accusations from the opposition party that Chen Shui-bian's wife was involved in trading stocks and obtaining Pacific Sogo Department Store's gift certificates illegally in exchange for settling the disputed ownership.
On 1 June 2006, Chen declared that he was handing control of governmental matters to Premier of the Republic of China, Su Tseng-chang, and announced he would not be involved in campaigning. He also stated that he was retaining authority on matters that the constitution required him to retain authority over, presumably foreign affairs and defense policy, as well as relations with the PRC.
On 20 July 2006, opposition politicians accused that Chen had used a total of NT$10.2 million (US$310,000) worth of "fake invoices" to claim expenses after the National Audit Office found irregularities in presidential office accounts. The Taiwan High Court Prosecutors' Office investigated over this accusation. In a press release, the presidential office responded that the president assured the investigators that he did not pocket a single cent of the fund. During questioning at the presidential Office on the afternoon of 7 August 2006, the president detailed to the prosecutor how he spent the fund and presented relevant receipts and bank remittance statements.
Chen also lost a libel case brought on successfully by PFP chairman James Soong. Soong sued the president after Chen repeatedly accused him of secretly meeting the director of the People's Republic of China's Taiwan Affairs Office. Soong successfully sued Chen for NT$3 million.
On 3 November 2006, Chen's wife Wu Shu-chen and three other high-ranking officials of the Presidential Office were indicted of corruption of NT$14.8 million (US$450,000) of government funds using faked documents. Due to the protection from the constitution against prosecution of the sitting president, Chen could not be prosecuted until he left office, and he was not indicted, but was alleged to be an accomplice on his wife's indictment. The prosecutor of the case indicated that once Chen left office, his office would start the procedures to press charges against Chen. The indictment filed by prosecutors states that the indicted persons obtained government funds earmarked for secret foreign affairs, yet of six supposed secret diplomatic missions, there was sufficient evidence presented for only two. Of the remaining four, it was concluded that one did not exist, and in the case of the other three, the invoices presented were not found to be related to the secret missions.
The pan-Blue coalition, after receiving the news, demanded to call for another recall motion unless Chen resigned immediately. Another small party that backed Chen previously, Taiwan Solidarity Union, said they would likely to support the upcoming recall measure. If the recall had passed, it would have been up to the voters to decide Chen's fate in a referendum.
Leaders of the Democratic Progressive Party met together to discuss the unfavorable charges. The meeting ended when party leaders demanded Chen to explain the accusation within three days. There had long been rumblings inside the DPP that Chen has become their liability and should recall him before the presidential election. If Chen had resigned, he would have been the first Taiwanese president to step down and the vice-president, Annette Lu, would likely have taken power.
After the prosecutor announced the indictment, the campaign leader Shih proclaimed that the indictment was the historical high point in Taiwan and the month-long campaign was a success.
In a press conference 5 November 2006, Chen rebutted the charges against his wife and members of his presidential office. He said that Taiwan government offices advised him to prepare the receipts in such a fashion, and that after six years of doing so, it is strange that they would never mention an irregularity if it was not the right way to do it. He promised that all of the money actually went to diplomatic missions and did not go into any private pockets. Furthermore, he mentioned that when he took office, he thought his salary was so excessive that he cut his own salary in half, and that reduction is more than the amount he is accused of embezzling, so there is no need for him to take that money. In addition, he said that if the charges against his wife were proven in a court of law just as they were charged, then he would at that time step down as President of the Republic of China.
In defense of Chen, journalist Therese Shaheen of The Wall Street Journal Asia pointed out that controversy surrounding Chen can be in part attributed to the radical reforms he has tried to implement since stepping into power.

### Recall motion

In mid-June 2007, opposition pan-blue camp lawmakers initiated a recall motion that would allow the voters to remove Chen from power via a public referendum. On 20 June, Chen addressed the nation by television, denying any involvement of the first family or himself (other than his son-in-law) in any of the alleged scandals, or "directly" accepting the department's gift certificates. The motion was not passed. Of 221 lawmakers in the legislature, all 119 pan-blue and independent legislators voted in favor of the measure, 29 votes short of the two-thirds majority needed to pass the motion. Pan-Green legislators from the president's own party, the DPP, refused to receive ballots. Pan-Green legislators from the allied TSU cast abstaining ballots. No legislator voted against the recall motion.
After Wu was indicted, the Pan-Blue parties renewed calls to recall Chen, and TSU at first indicated that it would support the recall this time, but then said it would only support the new recall motion if "concrete evidence concerning corruption is presented".
On 1 September 2006, political activist Shih Ming-te launched an anti-corruption campaign. The movement accused Chen of corruption and asked for his resignation. By 7 September, more than one million signatures were collected, each with a donation of NT$100 (approximately US$3.00). On 9 September, tens of thousands of people demonstrated in the streets of Taiwan, wearing red. According to organisers, around 200,000 to 300,000 people joined the protest outside the presidential offices, but the police used aerial photography crowd counting techniques to put the number at about 90,000. Shih Ming-teh confirmed that most of his supporters are from the pan-Blue coalition in a September interview in The New York Times.

### 2008 elections

In the legislative election in 2008, Chen's party suffered a clear defeat, and Chen subsequently resigned as party chairman. With Chen's resignation and Frank Hsieh's ascension as the party's new chairman, the DPP has changed chairmen seven times since Chen took office in 2000.
In the presidential election on 22 March 2008, Kuomintang candidate Ma Ying-jeou defeated DPP candidate Frank Hsieh.

## Administration
### Cabinets

| Succession | Name | Political party | Term | Vice-Premier |
| 1 | Tang Fei | KMT | 20 May 2000 – 6 October 2000 | Yu Shyi-kun Chang Chun-hsiung |
| 2 | Chang Chun-hsiung | DPP | 6 October 2000 – 1 February 2002 | Lai In-jaw |
| 3 | Yu Shyi-kun | DPP | 1 February 2002 – 1 February 2005 | Lin Hsin-yi Yeh Chu-lan |
| 4 | Hsieh Chang-ting (Frank Hsieh) | DPP | 1 February 2005 – 25 January 2006 | Wu Rong-i |
| 5 | Su Tseng-chang | DPP | 25 January 2006 – 21 May 2007 | Tsai Ing-wen |
| 6 | Chang Chun-hsiung | DPP | 21 May 2007 – 20 May 2008 | Himself (acting) |