WRAPUP 3-Taiwanese pack election rallies, China vows to 'smash independence plots'

(Recasts, adds comment from ruling party candidate, paragraphs 6-7, comments from rally attendees, paragraphs 9 and 19, details of rallies, paragraph 18, previous TAIPEI)

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Hundreds of thousands attend final election rallies

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Taiwan votes for new president, parliament on Saturday

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Three competing to be Taiwan's next president

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China says will 'smash any Taiwan independence plots'

By James Pomfret and Sarah Wu

NEW TAIPEI, Taiwan, Jan 12 (Reuters) -

Hundreds of thousands of people attended final pre-election rallies in Taiwan on Friday ahead of critical presidential and parliamentary polls, as China's defence ministry warned it would "smash any Taiwan independence plots".

Taiwan, a neighbouring island China claims as its own, has been a democratic success story since holding its first direct presidential election in 1996, the culmination of decades of struggle against authoritarian rule and martial law.

The ruling Democratic Progressive Party (DPP), which champions Taiwan's separate identity and rejects China's territorial claims, is seeking a third term in office with its candidate, current Vice President Lai Ching-te.

China, which has never renounced the use of force to bring Taiwan under its control, has framed the elections as a choice between "peace and war", calling the DPP dangerous separatists and urging Taiwanese to make the "right choice".

The DPP rejects China's sovereignty claims, and says only Taiwan's people can decide their future.

Speaking at a rally in Taipei's neighbouring city New Taipei, Lai said the world was watching how Taiwan voted.

"If Taiwan moves closer to China again, Taiwan will lose its advantage, and foreign investment in Taiwan is more likely to be suspended or stopped," he told the crowd which the DPP estimated at more than 200,000. "Therefore, Taiwan must win this battle."

In the run-up to Saturday's election, China repeatedly denounced Lai and rebuffed repeated calls from him for talks.

"Without democracy and freedom, we have nothing," said Jay Liao, 26, a data scientist attending Lai's rally with his husband. "China could take all this away, including our marriage."

China's defence ministry, responding to a question earlier on Friday on Taiwan's air force upgrading F-16 fighter jets and buying more from the United States, said even with purchases of U.S. weapons the DPP "cannot stop the trend of complete reunification of the motherland".

"The Chinese People's Liberation Army remains on high alert at all times and will take all necessary measures to resolutely crush any form of 'Taiwan independence' separatist plots and firmly defend national sovereignty and territorial integrity," said ministry spokesperson Zhang Xiaogang.