Editing James Soong (section)

===2000 presidential election===
After losing the KMT presidential nomination to then-vice president Lien Chan, Soong ran as an independent in the [[2000 Taiwanese presidential election|2000 presidential election]]. Soong advocated a gradual union between Taiwan and the mainland by first signing a [[non-aggression pact]] followed by the formation of a cross-strait union similar to the [[European Union]]. His platform called for the characterization of relations between the mainland and Taiwan as neither foreign nor domestic. Although widely seen as the candidate most friendly to mainland China, Soong took particular effort to counter the perception that he would "sell out" Taiwan.

The KMT responded by expelling Soong and his supporters from the party.<ref name="ap-expel-soong">{{cite news |last1=Foreman |first1=William |title=Party Expels Taiwan Front-Runner |url=https://apnews.com/article/dd61ea3661eb7d9b89582c6c8070b9e0 |access-date=21 May 2022 |work=AP News |publisher=[[Associated Press]] |date=16 November 1999}}</ref> In the final months leading to the 2000 elections, the KMT, then under [[Lee Teng-hui]]'s leadership, sued Soong for theft, alleging that as party secretary-general, he stole millions of Taiwan dollars in cash<ref name="tt-soong-lawsuit-1">{{cite news |last1=Chen |first1=Lauren |title=KMT files lawsuit against Soong |url=https://www.taipeitimes.com/News/front/archives/2000/02/17/0000024433 |access-date=21 May 2022 |work=[[Taipei Times]] |date=17 February 2000}}</ref> intended for the family of the late president [[Chiang Ching-kuo]] and hid the money in the Chunghsing Bills Finance Company.<ref name="tt-soong-chung-hsing">{{cite news |title=Lee interview rekindles Chung Hsing scandal |url=https://www.taipeitimes.com/News/front/archives/2003/04/09/201372 |access-date=21 May 2022 |work=[[Taipei Times]] |date=9 April 2003}}</ref><ref name="nbm-soong">{{cite news |last1=Hioe |first1=Brian |title=James Soong Comes Under Scrutiny in Relation to Corrupt Frigate Deal |url=https://newbloommag.net/2022/02/25/soong-frigate-deal/ |access-date=21 May 2022 |work=New Bloom Magazine |date=25 February 2022}}</ref> In defense he stated that the money in those bank accounts was in fact all from the KMT, and he insisted that the money transfer was authorized by then-KMT chairman Lee Teng-hui.<ref name="tt-soong-lawsuit-1" /><ref name="tt-soong-chung-hsing" /> These statements have been substantiated by an internal KMT memo signed by Lee which were published by the court many years later.

The scandal hurt Soong's clean image. Initially leading in the polls,<ref name="ap-expel-soong" /> Soong narrowly lost the election with 36.84% of the vote to [[Chen Shui-bian]] of the [[Democratic Progressive Party]] with 39.3%. Lien came in a distant third with only 23.1%. 

After losing the election, Soong's supporters protested in front of the KMT party headquarters and blockaded the building for a few days. They succeeded in pressuring Lee Teng-hui to resign as KMT chairman in favor of Lien Chan. Within weeks, Soong and his supporters formed the [[People First Party (Taiwan)|People First Party]] (PFP), considered a spin-off from the KMT.

Prosecutors later dropped all charges against Soong in the Chunghsing scandal. In 2003, the investigation was reopened, with former president Lee (now expelled from the KMT and the "spiritual leader" of the pro-independence [[Taiwan Solidarity Union]]) testifying against Soong in court. However, with the KMT allied with the PFP for the 2004 presidential election, the KMT aided Soong in his defence, providing documents signed by Lee. KMT chairman Lien Chan claimed the KMT was misled into filing the lawsuit against Soong.