Panama dumps Taiwan for China

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Panama’s Vice President and Foreign Minister Isabel Saint Malo shakes hands with Chinese Foreign Minister Wang Yi after the two signed a joint communique agreeing to establish diplomatic relations, in Beijing, on June 13, 2017

Panama and China announced on Tuesday they were establishing diplomatic relations, as the Central American nation became the latest to dump Taiwan for closer ties with the world’s second-largest economy.

The move prompted an angry response from Taiwan and will likely further strain ties between Taipei and Beijing, which considers the self-ruled island a renegade province awaiting reunification with the mainland.

Taiwan is recognised by around 20 countries worldwide and its status is one of the most politically sensitive issues for Chinese leaders who pressure trade partners to accept its “one China” principle.

Panamanian President Juan Carlos Varela said in a nationally televised message “to the country and the world” that “Panama and China…

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