Chen Shui-bian, the current president, who steps down in May this year, had repeatedly angered Beijing with his pro-independence rhetoric.

Hsieh favours formal independence while Ma Ying-jeou, who leads in opinion polls, wants eventual reunification once China embraces democracy.

 

The two candidates had toughened their stances on China following Beijing's crackdown in Tibet.

 

Economic issues

 

However, analysts say Taiwan's faltering economy would have been the number one issue with voters.

 

Both candidates advocate more direct flights, tourism and investment opportunities between Taiwan and China in order to improve the domestic economy.

 

Taiwan candidates

Frank Hsieh   Candidate for ruling Democratic Progressive Party (DPP)   Propelled into politics after working as a defence lawyer for political dissidents in 1980   Focused campaign on environmental issues, the poor and Taiwan's identity   Has backed cautious opening of Taiwan-China economic links and hopes eventually to accelerate moves to make Taiwan a country distinct from China   Ma Ying-jeou   Candidate for nationalist Kuomintang (KMT) party   Unseated Chen Shui-bian, the current president, as mayor of Taipei in 1998   Focused campaign on reviving Taiwan's economy by introducing common market with mainland China   Has advocated improving relations with China, signing a peace treaty and halting Taiwan's push for independence

Al Jazeeera's Hamish MacDonald in Taipei reported that Taiwan's economy is an overriding theme in the elections.

 

MacDonald said that there has been an increased awareness among Taiwanese voters that the island's economy is directly anchored to the growth of China.

 

However, Beijing has imposed certain limits on conducting business transactions from Taiwan.

 

"Taiwan has a growing economy, yet it lags behind its Asian neighbours," MacDonald reported.

 

Ralph Cossa from Pacific Forum CSIS, a US based think tank, says:  "Domestic issues, such as the economy and corruption, are bigger than China or foreign policy."

Aside from selecting a new president in Saturday's election, voters will also be offered a referendum on whether to seek UN membership.

In a sign how sensitive the poll is, two US aircraft carriers have been deployed to an unspecified area near Taiwan during the election for what US defence officials say are training exercises.

In 1996, during Taiwan's first democratic presidential election, China fired a series of missiles into the Taiwan Strait in a sabre-rattling gesture seen as trying to intimidate voters.