This thesis examines domestic politics of Taiwan with a particular focus on periods from 2000 when Chen Shui-bian was elected as president to 2007. Through better understanding the political parties, the political process, and peoples' perception of politics/national identity in Taiwan this author hopes to contribute to the on going research regarding Taiwan's identity, its political recognition/or lack there of, and predict or at least highlight key variables that may influence the future of Taiwan and cross-strait relations. Through political and social motivating factors the people of Taiwan are undergoing a gradual shift in identity. Both Taiwan and China have the potential to benefit from cross-strait relations regardless of any change in the status quo. Gradual change in status quo in either direction could mutually benefit both Taiwan and China over the long-term. Rational decisions will also ensure the security and stability of a nation over time.International Studie