Hsieh favoured formal independence while Ma preferred eventual reunification once China embraces democracy.

 

But both candidates had toughened their stances on China following Beijing's crackdown in Tibet.

 

Economic issues

 

Taiwan candidates

Frank Hsieh   Candidate for ruling Democratic Progressive Party (DPP)   Propelled into politics after working as a defence lawyer for political dissidents in 1980   Focused campaign on environmental issues, the poor and Taiwan's identity   Has backed cautious opening of Taiwan-China economic links and hopes eventually to accelerate moves to make Taiwan a country distinct from China   Ma Ying-jeou   Candidate for nationalist Kuomintang (KMT) party   Unseated Chen Shui-bian, the current president, as mayor of Taipei in 1998   Focused campaign on reviving Taiwan's economy by introducing common market with mainland China   Has advocated improving relations with China, signing a peace treaty and halting Taiwan's push for independence

However, analysts say Taiwan's faltering economy would have been the number one issue with voters.

Both candidates advocate more direct flights, tourism and investment opportunities between Taiwan and China in order to improve the domestic economy.

Al Jazeeera's Hamish MacDonald in Taipei reported that Taiwan's economy is an overriding theme in the elections.

MacDonald said that there has been an increased awareness among Taiwanese voters that the island's economy is directly anchored to the growth of China.

However, Beijing has imposed certain limits on conducting business transactions from Taiwan.

"Taiwan has a growing economy, yet it lags behind its Asian neighbours," MacDonald reported.

Ralph Cossa from Pacific Forum CSIS, a US based think tank, says:  "Domestic issues, such as the economy and corruption, are bigger than China or foreign policy."

Referendum failure

Meanwhile, the central election commission said that Taiwan's two referendums on joining the United Nations had failed.