In the 2000 presidential elections, the Kuomintang (KMT) suffered a devastating defeat, in which internal turmoil had caused the party to lose its grip on power.

Meanwhile, after winning the presidential election, Chen Shui-bian moderated his pro-independence position, alienating some hardline independence supporters in the DPP.

It was hoped that this would lead to a pan-green majority in the nation's primary legislative body, thus giving the executive branch, under Chen, the political backing necessary to pursue policies supportive of Taiwanese independence.

The visit to the Yasukuni Shrine by TSU chairman Shu Chin-chiang in April 2005 generated a controversy across the political spectrum and further made their party goals more ambiguous to the voters.

Chairman Shu denied the visit should be seen as support for militarism, and claimed it was a goodwill gesture to Taiwan's former colonial master Japan to further strengthen the security of the Pacific region.

[20] Chairman Shu's visit, however, gave opportunity to aboriginal legislator Kao Chin Su-mei to gain publicity by protesting with her supporters at the chairman's arrival at the Chiang Kai-Shek International Airport, now renamed Taiwan Taoyuan International Airport.

The TSU suffered defeat in the December 2005 local elections, along with its pan-green partner the DPP, and failed to win any municipal mayoral or county magistrate seats.