Source from WSJ

TAIPEI—Taiwan’s President Ma Ying-jeou of the Kuomintang, who has championed rapprochement with China, narrowly beat challenger Tsai Ing-wen of the pro-independence Democratic Progressive Party in an election Saturday, a result greeted with relief in Beijing and Washington.

According to the central election commission, Mr. Ma won 6.89 million votes, or 51.6% of votes, while Ms. Tsai had 6.09 million votes. Analysts said the third candidate, James Soong of People First Party, would lure votes from Mr. Ma, but he accrued only 369,588 votes, well below expectations.

“My winning shows that people in Taiwan agree with our effort to strive for peaceful cross-Strait relations,” Mr. Ma told a crowd of supporters, referring to the Taiwan Strait. “I believe the relations [with Beijing] will be more harmonious and more trustful going forward.”

Ms. Tsai, after conceding her election loss, told reporters that she will step down to take full responsibility. “We will carefully re-examine ourselves,” she said. The DPP said it will decide shortly whether to accept Ms. Tsai’s resignation.

In a heated race, Mr. Ma fought an uphill battle against Ms. Tsai, who tried to cash in on the disappointment among middle- and low-income classes that closer economic ties between Taiwan and China has mostly benefited just the rich, while Taiwan’s export-reliant economy is hit hard by economic turmoil in the U.S. and Europe.

The trying relations between Taipei and Beijing have eased since Mr. Ma became president in 2008. In June 2010, the sides signed a landmark trade agreement that will have led to the gradual lifting of tariffs on goods and restrictions on investment. Mr. Ma has also presided over agreements that has allowed Chinese tourists to visit Taiwan and opened up direct cross-Strait flights.

The Taiwan Affairs Office of China’s State Council said a peaceful development of relations between Taiwan and China during Mr. Ma’s first four-year term is a “correct road.”

“We are willing to join hands with Taiwan’s all walks of life on the basis of continuing to oppose the ‘Taiwan independence’ and sticking to the ‘1992 consensus,’ to break new ground for the peaceful development of the cross-Strait relations and make common efforts for the great rejuvenation of the Chinese nation.”

The 1992 consensus says both China and Taiwan want “one China” but allows each side to define what “one China” means. Recognition of the 1992 consensus is touted by Beijing as a prerequisite for talks.

Beijing, which regards Taiwan as a renegade province, has made no secret of its preference for Mr. Ma. But it stopped short of backing him with strong rhetoric, fearing such involvement could backfire.

Mr. Ma’s second four-year term will begin May 20. In Taiwan, presidents can serve a maximum of two terms.

Concurrent to the presidential election, the Kuomintang held on to its majority in the legislative election, potentially easing the way for the party to push for closer ties with Beijing. The China-friendly KMT won 64 seats, or 56.6% of the 113 seats available, but down from the 71.7% in the 2008 race. The opposition Democratic Progressive Party won 40 seats, or 35.4% of seats available, up from 23.9% in the previous election.

The White House said in a statement: “Cross-Strait peace, stability, and improved relations in an environment free from intimidation are of profound importance to the United States. We hope the impressive efforts that both sides have undertaken in recent years to build cross-Strait ties continue.”

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