March 18 (Bloomberg) -- Taiwan President Chen Shui-bian and Vice President Annette Lu joined a rally by the ruling Democratic Progressive Party (DPP) today after a march through downtown Taipei to protest at China's hard-line stance toward the island.

The DPP estimated a turnout of 100,000 for the rally, which comes amid escalating cross-Strait tensions. China's leaders earlier this month criticized Chen for closing a forum on unification with the mainland. The DPP said today's rally aimed to raise awareness of China's military threats against Taiwan.

``Taiwan is an independent sovereign state and Taiwan's future should be determined by its 23 million people,'' said Chen, who addressed the protesters after they had finished their march. ``Taiwanese people oppose annexation and invasion.''

Chen said his government would continue to promote democratic development. The rally follows criticism from Taiwan's opposition Nationalist Party or Kuomintang (KMT), which urged Chen not to escalate tension with China, Taiwan's biggest trade partner and investment destination. Taiwanese businesses and individuals have about $100 billion invested there.

The rally, under a banner of ``Protecting democracy, opposing annexation,'' saw some protesters dressed as giant pandas and carrying rocket-shaped toys, in an effort to ridicule China's offer of two pandas to Taiwan while deploying missiles that target the island.

China

China has installed 784 missiles that target Taiwan, according to the island's Ministry of Defense. ``China can't just do what they want while neglecting the feelings of the Taiwanese people,'' said 65-year-old Li Cheng-shen, who came from the southern part of the island to join the rally.

Chinese Premier Wen Jiabao on March 14 scolded Taiwan's government for ``highly risky and dangerous'' actions and threatened to respond to any steps toward independence.

China is monitoring developments in Taiwan and ``making preparations for any eventualities,'' Wen said at the end of this month's annual plenary session of parliament. China in 2005 passed an anti-secession law authorizing an attack against Taiwan should the island declare independence or should peaceful reunification prove impossible.

China and Taiwan have been ruled separately since a civil war ended in 1949, when the Communist Party came to power on the mainland. China considers the island a renegade province to be reunited by force if necessary.

The KMT held a rally ``Fighting for livelihood, saving Taiwan,'' on March 12 to protest Chen's scrapping of the unification panel. They claimed it drew 100,000 people while police estimated the turnout at 36,000.

To contact the reporter on this story: Theresa Tang in Taipei at ttang3@bloomberg.net;

Last Updated: March 18, 2006 05:27 EST