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Significance

Eric Chu, the party chairman, was nominated to replace Hung Hsiu-chu, whose candidacy failed to rally support within the party. He will run against Tsai Ing-wen, leader of the opposition Democratic Progressive Party.

Impacts

Cross-Strait relations will once again play the central role in the 2016 presidential and legislative elections.

The Kuomintang's diplomatic stance will shift toward the DPP's in an attempt to assuage concerns over cross-Strait policy.

Although Tsai has promised not to undo trade agreements with China, she is unlikely to press ahead with new ones.

China will remain largely silent on the Taiwanese elections, to avoid reinforcing anti-China sentiment that is widespread in Taiwan.

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