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In the 2000 presidential election itself, the split in Kuomintang votes between Soong and Lien led in part to the election of Chen Shui-bian. After the election, there was widespread anger within the Kuomintang against Lee Teng-hui, who was expelled and formed his own pro-Taiwan independence party, the Taiwan Solidarity Union. After Lee's expulsion, the Kuomintang moved its policies back to a more conservative one and began informal but close cooperation with the People First Party and the New Party. This coalition became informally known as the Pan-Blue Coalition. Although the members of the Pan-Blue Coalition maintain separate party structures, they closely cooperate in large part to ensure that electoral strategies are coordinated, so that votes are not split among them leading to a victory by the Pan-Green Coalition. The KMT and PFP ran a combined ticket in the 2004 presidential elections with Lien Chan running for president and James Soong running for vice president. The campaign emblem for the Lien-Soong campaign was a two seat bicycle with a blue (the color of the KMT) figure in the first seat and an orange (the color of the PFP) figure in the second. There were talks in late 2004 that the KMT and the PFP would merge into one party in 2005, but these talks have been put on hold. In the 2004 legislative election the three parties from the pan-blue coalition organized themselves to properly divide up the votes (配票) to prevent splitting the vote. The New Party ran all but one of its candidates under the KMT banner. The result was that the KMT gained 11 more seats and the PFP lost 12 seats. Right after the election, PFP chairman James Soong began criticizing the KMT for sacrificing the PFP for its own gains and stated that he would not participate in any negotiations regarding to the two parties' merge. Soong's remarks have been strongly criticized by the KMT, a majority of PFP members, and the New Party, whose rank and file were largely absorbed by the PFP following the 2001 elections. Nonetheless, shortly after the legislative election, the PFP legislative caucus agreed to cooperate with the DPP over the investigation into the KMT's finances. On February 24, 2005, James Soong met with President Chen for the first time in four years and issued a 10 point declaration supporting the name "Republic of China", the status quo in cross-Strait relations, and the opening of the Three Links. Unlike Soong, Lien did not respond to the offer from Chen to meet.
In the December 2005 3-in-1 local elections, the KMT made large gains and held 14 seats, the DPP suffered defeat and held only six, the PFP retained only one, and the TSU was completely shut out. Ma Ying-jeou was now virtually assured of leading the KMT and pan-blues for the 2008 presidential election, but it is unclear as yet whether Soong will run as vice-president. See also
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