Taiwan on Friday appointed the former chairman of its ruling pro-independence party as premier after the incumbent resigned along with the entire Cabinet in response to local election defeats.

November's election losses presented a major challenge to President Tsai Ing-wen, who faced mounting criticism at home over her reform agenda while facing renewed threats from China, which considers the self-ruled island its own.

Tsai appointed Su Tseng-chang, a two-term former chairman of her Democratic Progressive Party, saying Taiwan faced challenges amid rising Chinese threats and trade tension between key backer the United States and China.