Taiwan President Chen Shui-bian has resigned as head of his Democratic Progressive Party, after the party and its allies suffered a major defeat in Saturday's parliamentary election.

An opposition alliance, led by the Nationalists, won 114 seats in the 225-member chamber.  Mr. Chen's coalition won 101 seats.

Mr. Chen told reporters Tuesday that he takes full blame for the coalition's defeat and will leave his party leadership post as a result.

Observers say the election deals a setback to President Chen's drive to move Taiwan toward an identity apart from mainland China.

China considers Taiwan a renegade province and has threatened to seize the island by force if it makes moves toward independence.

Some information for this story provided by AFP and Reuters.