Hsu supported a merger between Tainan City and Tainan County to form a special municipality. The Executive Yuan passed a resolution to upgrade the city, and the official merger will occur in December 2010. In January 2010, Hsu declared his candidacy in the 2010 municipal election. During the DPP primary election in May, he lost to fellow Tainan politician William Lai by 12% of the votes, ending his candidacy.
