The government also lifted martial law but retained rigid press censorship.
Taiwan has lifted martial law, allowed the formation of new parties and held its first presidential election.
China lifted martial law in May 1990, and since then the region has been largely quiet.
Taiwan has been moving toward democracy since 1987, when it lifted martial law.
Over the last 18 months, the Government has lifted martial law, permitted demonstrations and allowed opposition parties to form.
At the same time, officials say the situation is not normal enough to lift martial law.
Later that year, he lifted martial law and allowed parties to function.
"After the government lifted martial law," he said, "the political situation in Taiwan became a mess."
The President then lifted martial law, and the opposition parties took their elected seats in the national assembly.
On 28 October 2001, authorities lifted martial law in the area.