The win is a rebuff to China, which said it would not give up its goals of "reunification."

At the celebrations, Lai lauded his victory.

"The Taiwanese people have taken action to successfully resist the intervention of external forces," he said, adding: "This is because we believe in electing our own president."

But he added he was "determined to safeguard Taiwan from threats and intimidation from China."

His DPP party champions Taiwan's separate identity and rejects China's territorial claims.

In the run-up to the election, China denounced Lai as a dangerous separatist and has repeatedly rebuffed Lai's call for talks.

The DPP was seeking a third successive four-year term - something that's unprecedented under Taiwan's current electoral system.

Mounting public frustration at domestic issues across its eight years in power meant it lost its majority in parliament - making it harder for Lai to pass legislation.

Taiwan's election took place at a time of growing geopolitical tensions between Beijing and the United States.

The latter is Taiwan's most important international backer and arms supplier, despite the lack of formal diplomatic ties with the island.

In response to the win, U.S. President Joe Biden said the United States does not support the independence of Taiwan.

The Biden administration has feared that the election and subsequent transition to a new administration would escalate conflict with Beijing.

Since the last election in 2020, China has engaged in an unprecedented level of military activity in the Taiwan Strait, including holding two rounds of major war games near the island.

Lai, however, said "only peace will benefit both sides."