Image copyright Getty Images Image caption Now only 21 countries in the world maintain official ties with Taiwan

The government of Sao Tome and Principe has cut diplomatic ties with Taiwan, officials said.

China welcomed the decision by the African island nation saying it was "back onto the correct path of the One China principle".

Taiwan's foreign ministry condemned the move, alleging Sao tome demanded a huge amount of financial support.

The "One China" principle insists that there is only one China in the world and that Taiwan is a part of it.

The move comes just over a week after comments by US president-elect Donald Trump that the US did not have to abide by the One China policy - the diplomatic acknowledgement by the US of the One China principle.

The move means only 21 countries and governments, including Swaziland and Guatemala, still maintain official ties with Taiwan.

'Astronomical financial help'

Sao Tome suspended ties with China in 1997, after choosing to officially recognise Taiwan.

Any country that wants diplomatic relations with mainland Beijing must break official ties with Taipei, leading to Taiwan's diplomatic isolation from the international community.

Image copyright Getty Images Image caption Sao Tome and Principe ex-President Fradique (r), accompanied by then Taiwan President Chen Shui-bian

Taiwanese Foreign Minister David Lee alleged on Wednesday that Sao Tome was demanding "an astronomical amount of financial help," without providing further details.

"We think the Beijing government should not use Sao Tome's financing black hole ... as an opportunity to push its 'One China' principle," Mr Lee said on Wednesday.

"This behaviour is not helpful to a smooth cross-strait relationship."

China has not said whether it will now establish diplomatic ties with the West African state.</s>TAIPEI—Taiwan’s small handful of diplomatic partners has gotten a little smaller, with the African nation of São Tomé and Príncipe severing formal relations amid a campaign by China to pressure the rival government in Taipei.

The move, which Taipei confirmed Wednesday after a decision by São Tomé’s government, will have little direct impact on Taiwan. São Tomé has long been a recipient of economic aid, and two-way trade last year...</s>BEIJING (AP) — Taiwan says the African island nation of Sao Tome and Principe has broken their diplomatic ties.

Just 21 countries and governments now have diplomatic ties with Taiwan. Most of the world and the United Nations do not formally recognize Taiwan as a condition of maintaining relations with Beijing, which considers Taiwan a part of its territory.

China’s foreign ministry on Wednesday said it welcomed Sao Tome’s decision to “break the so-called ‘diplomatic’ ties with Taiwan.”

China did not say whether it would resume its own diplomacy with Sao Tome. Beijing suspended relations between the two sides in 1997, after Sao Tome established relations with Taipei.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>Up until today (Dec. 21), 22 countries recognized the Republic of China’s government in Taipei over the People’s Republic of China’s in Beijing. Now, that figure has shrank to 21.

Today China’s foreign ministry announced the nation of São Tomé and Príncipe has switched its diplomatic allegiance to Beijing.

“China expresses appreciation of this, and welcomes São Tomé back onto the correct path of the ‘one China’ principle,” China’s foreign ministry said in a statement (link in Chinese), adding the principle is China’s “core interest” and is associated with “over 1.3 billion Chinese people’s feelings.”

Taiwan, a self-governing island that has held democratic elections for decades, has long been elbowed out of the international community because Beijing views it as a breakaway province since the end of the Chinese civil war in 1949. Under Beijing’s one-China principle, countries can either recognize Taipei—the Republic of China—or Beijing—the People’s Republic of China—as the legitimate representative of China, but not both. Since 1979, when the US established official diplomatic ties with the government in Beijing instead of Taipei, almost every country in the world has followed suit.

The Taiwanese government said in a Dec. 21 statement that it “deeply regrets” São Tomé’s decision and will withdraw its embassy there and end all cooperation projects between the two sides. It added that it assisted São Tomé in many areas, but in particular it helped reduce the incidence of malaria in São Tomé from 50% in 2003 to 1% in 2015.

“The government of São Tomé and Príncipe, however, with excessive financial difficulties, and demands beyond those the ROC could meet, has ignored 20 years of friendly diplomatic relations, playing both sides of the Taiwan Strait while holding out for the highest bidder. The ROC regrets the São Tomé and Príncipe government’s abrupt and unfriendly decision, and condemns this action,” said the Taiwanese government in the statement.

São Tomé, a Portuguese-speaking country with a population of 190,000 off Africa’s west coast, established diplomatic ties with Beijing in 1975, but switched recognition to Taiwan in 1997. As recently as Dec. 8, Her Jian-gueng, the Taiwanese ambassador in São Tomé, attended the opening ceremony of a Taiwan-funded digital center in the small town of Neves, according to the embassy’s news release (link in Chinese).

But Beijing had also been making overtures to São Tomé. In 2013 it opened a trade mission in 2013 in São Tomé to promote projects including a $400 million deepwater port. Taiwanese foreign minister David Lin said at the time that it seemed unlikely that São Tomé would switch its allegiances to Beijing.

São Tomé has become more dependent on China than on Taiwan economically in recent years. In 2014 China was the third-largest exporter to São Tomés, shipping $5.7 million worth of goods in manufactures, machinery and transport equipment, according the World Bank.

São Tomé’s decision came to Taiwan abruptly—it only notified Taiwan’s foreign ministry five hours before the announcement was made (link in Chinese). Taiwan’s São Tomé embassy website now redirects to the Ministry of Foreign Affairs website.

São Tomé, though tiny and economically insignificant, is breaking away from Taipei at a tense moment in cross-strait relations. After Taiwan president Tsai Ing-wen’s phone call to Donald Trump and a subsequent suggestion by Trump that the US’s one-China policy could be in play, Beijing has signalled its strong disapproval through its rhetoric and military muscle-flexing. Since Tsai—whose party the Democratic Progressive Party has espoused Taiwanese independence—came to power in May, Beijing has steadily tried to squeeze Taiwan’s international space further, for example by preventing it from taking part in international conferences.

Jorge Guajardo, a former Mexican ambassador to China, said São Tomé’s move is important because it “breaks with China’s policy of detente in terms of not poaching each others’ diplomatic allies.” An unofficial “diplomatic truce” held during president Ma Ying-jeou’s eight-year term in Taiwan, during which Taiwan built closer relations with China. The last country to break ties with Taiwan was Gambia at the start of this year.

“The fact that they are going back to poaching each others’ embassies means that China is taking off its gloves and will just seek to isolate Taiwan internationally,” said Guajardo.

Tsai’s upcoming trip to Taiwan’s Central American allies in January will be closely watched. According to Wikileaks cables from 2008 and 2009, Nicaragua, Paraguay, the Dominican Republic, and Panama had all expressed interest in recognizing Beijing instead of Taipei, but the requests were denied by Beijing as a gesture of goodwill amid the “diplomatic truce.”

Philip Yang, an adjunct professor in political science at National Taiwan University and former deputy secretary-general of Taiwan’s National Security Council, said he is “worried” that the recent cross-strait tensions could lead to a “chain reaction” of allies breaking off ties with Taiwan.

Among the remaining 21 allies, Taiwan’s relationship with the Vatican is arguably the most important, and one that is under imminent threat as Beijing—which has been persecuting Christians and allows only its own version of the Catholic Church to operate above ground in China—tries to woo the Holy See.

Jason Hsu, a legislator with the opposition Kuomintang party in Taiwan, said that São Tomé’s switch is a signal that Taiwan needs to rethink its foreign policy strategy.

“If the diplomatic ties built over the past 20 years are only about money, should we continue to spend large sums of money on those ties?… If the Chinese Communist Party is going to keep applying pressure, [allies breaking off ties with Taiwan] will continue to happen and we need a solution,” he wrote in a Facebook post (link in Chinese). Hsu said Taiwan should identify which ties are absolutely vital to keep—namely the Vatican.</s>The Taiwanese government hopes to buddy up with U.S. President-elect Donald Trump after he takes office next month. Closer U.S. ties would annoy China because China claims Taiwan as its own and resents any outside government for treating it as a state. But as Trump and Taiwan explore how they might work together, the Communist leadership has directed most of its wrath at the United States rather than at Taiwan so the island’s latent anti-China sentiment doesn’t intensify.

You might expect China to dissuade even more of its tourists from visiting Taiwan – the headcount is already down since April – or wave money at some of Taiwan’s 21 diplomatic allies so they defect to Beijing. Taiwan says China "tempted" Sao Tome and Principe to cut ties Wednesday, but analysts quickly say few citizens here care. A military miscalculation could obviously shake a fragile relationship that’s been effectively frozen since May because neither China nor Taiwan President Tsai Ing-wen can come up with agreeable conditions for talks. Taiwan is self-ruled. Beijing’s insists on eventual unification despite widespread opposition among Taiwanese. Both have moved ships and planes around the 160 km-wide (100 miles) strait between them for decades without a clash.

But here are two modern-day and more likely scenarios that could turn the freeze into a firestorm of anger, inflaming distrust long-term on both sides.
• One of these overseas fraud cases goes wrong. China has pressured a series of countries to hand over Taiwanese citizens accused of offshore-based phone and Internet fraud that targets Chinese nationals. Kenya, Malaysia and Indonesia are among those who have passed on Taiwanese people for trial in Chinese courts that give harsher sentences than Taiwan judges would. Those cases are getting quiet support in Taiwan so far (you hear jokes about outsourcing a crime problem to Beijing), but someday it could go wrong. Suppose a Taiwanese fraud suspect is wrongly accused and mounts a strong defense via media, well connected friends or Taiwanese officials. Judges in China see suspects as convicts who are just passing through court to get their paperwork for prison. China is also showboating politically, so it's unlikely to risk loss of face by handing back someone even if evidence points to innocence. Public outrage in Taiwan, government venting toward China and a snub by Beijing would follow this kind of case. So much for any thaw in relations.
• 2. Political face-off at the University Games in Taipei. In August Taipei will host the Summer Universiade, an international sporting meet for university athletes and an unusually big event for the city (which might explain the sloppiness of its English official website). The giant tech show Computex is about the only other event of scale held here. Master organizer the International University Sports Federation calls these games second in sports only to the Olympics. China makes Taiwanese teams at international sporting events including this one the name “Chinese Taipei” to imply a link with the Beijing government. They can’t fly the normal Taiwan flag. Taiwanese resent those conditions as degrading. Suppose in a moment of pride a Taiwanese athlete wears something other than “Chinese Taipei” and the China team gets angry. Taiwan risks getting thrown off its own stage. We saw a parallel when Taiwan’s Miss Earth 2015 candidate was barred for wearing a “Taiwan” sash. Or suppose Beijing gets peeved beforehand about something else and boycotts the whole event?</s>China’s Foreign Ministry on Wednesday welcomed the decision by the African island nation of Sao Tome and Principe to break ties with Taiwan.

Foreign Ministry spokeswoman Hua Chunying did not mention any potential links between the tiny nation and Beijing, but offered appreciation for Sao Tome and Principe’s “return to the right track.”

“China is ready to develop friendly and cooperative relations with all countries on the basis of the Five Principles of Peaceful Coexistence and the one-China principle,’’ she said.

According to Taiwan’s Ministry of Foreign Affairs, Sao Tome and Principe recently asked Taipei for up to $100 million to cover financial shortfalls. Taiwan turned down the request, the ministry said, leading to an ending of relations.

“It’s indeed a significant amount of financial assistance to a country with the population of 150,000,’’ Minister of Foreign Affairs David Lee said.

Starting Wednesday, Taiwan will retreat from the West African country, withdrawing its embassy and technical personnel, Lee said.

When asked by reporters if Taiwan was concerned about a domino effect of countries severing their ties with Taiwan and instead adhering to China’s “One-China’’ policy, Lee said China is currently Taiwan’s largest trading partner and Taiwan is one of the largest investors in China.

The island nation has its own currency, passport and flag and is represented overseas by de facto embassies known as Taipei Economic and Cultural Offices.

The self-governing island has held democratic elections for decades and competes in international sporting competitions under the moniker Chinese Taipei.

Wednesday’s decision by Sao Tome and Principe left Taiwan with diplomatic ties to only 21 states, including the Vatican.

The number has been declining since 1979, when the U.S. established official diplomatic ties with the government in Beijing instead of Taipei.

In November 2013, another West African nation, Gambia, also removed itself from the list of countries that officially recognise Taiwan.</s>TAIWAN on Wednesday accused China of using Sao Tome and Principe's financial woes to push its "one China" policy after the West African state ended ties with the self-ruled island, with Taiwan saying that China's action would not help relations across the Taiwan Strait.</s>The Vatican’s announcement of an impending deal with China along political and religious dimensions has sparked serious debate among Catholics worldwide. But for Taiwan, it raises diplomatic worries, not doctrinal ones. The Holy See is one of now just 21 governments that grant diplomatic recognition to Taipei instead of to Beijing. As the democratic island struggles against the suffocating pressure of its continental neighbor, what does it mean for one of its few unambiguous allies, and perhaps the one with the greatest soft power, to negotiate terms of agreement with Beijing?

The latest blow has come in the tiny African island nation of São Tomé and Principe, which has just broken off ties with Taipei and is set to re-recognize Beijing after ditching it in 1997. But since the electoral victory this year of the Democratic Progressive Party (DPP) and Tsai Ing-wen, seen by Beijing as dangerously pro-independence, Taiwan has faced increasing antipathy from China, which has curtailed the number of Chinese tourists allowed to visit and repeatedly blocked Taiwan’s participation in multilateral organizations, including the UNFCCC, the global climate change body, and the International Civil Aviation Organization, the agency responsible for flight safety.

This comes despite Tsai’s moderation. She must respect the wishes of the Taiwanese people, who have registered deep concern about drifting too close to an acquisitive China. But more than any other leader, she has reined in the radical, pro-independence elements in her party and pulled the DPP to the political center. Despite real stretches by Tsai, this was still not enough for Beijing, which has ratcheted up pressure accordingly.

Signs of trouble already appeared in March — after election results were in but before Tsai assumed office. China established diplomatic relations with Gambia, which had previously broken off ties with Taiwan, raising concerns that it might try to peel off additional allies — as has just happened with São Tomé. There are now worries that the Vatican could be the next ally poached, especially after the Catholic Church’s top diplomat, Cardinal Pietro Parolin, announced “expectations for new developments and a new season of relations” with China.

Though officials in Taipei have publicly proclaimed that ties are stable, and graciously expressed support for dialogue and greater religious freedom, they are quietly concerned that relations with the Vatican could be severed, if not this year, then one day in the future.

Of the 190 plus countries in the world today, 20 nations, plus the Holy See, now recognize Taiwan, using the formal name Republic of China (ROC), with its capital in Taipei. The remainder officially recognize the People’s Republic of China, ensconced in Beijing. Some nations such as Panama have had continuous relations with Taiwan since its founding. Other ties are to small island states subject to a diplomatic tug of war with China, periodically fueled by development aid. Many nations — including the United States and numerous countries in Europe — engage in a vibrant trading relationship and maintain de facto relations with Taiwan through economic and cultural offices that function as embassies.

This is a remnant of Cold War conflicts. The ROC government historically claimed all of China, Mongolia, Tibet, and Taiwan, even after it was driven to the island, which it had occupied in 1945. Today, the government no longer actively pursues this claim, and in 1991, then-President Lee Teng-hui renounced “the use of force to reunify China” and acknowledged “Beijing’s rule on the Chinese mainland” as a gesture of goodwill. China, in contrast, has never renounced the use of force to acquire Taiwan.

For more than six decades, the Holy See has recognized Taiwan, sticking by it even after the island’s largest allies ditched it — diplomatically — in the 1970s. Though the Vatican originally kept its representative on the Chinese mainland after the Communist takeover in 1949, the diplomat was expelled shortly after. The relationship with the People’s Republic has been testy ever since, particularly fraught over the appointment of bishops.

Catholicism has a long history in China, including a spate of missionaries and advisors during the Qing Dynasty. The community has persisted, even through the darkest days of the Cultural Revolution, when it was attacked as an invasive force. In contrast, Catholics in Taiwan have historically been granted the protection of law, and the church functions much as it does in any other country. Decades of growth have resulted in a flourishing community of 300,000 practicing Catholics, including Taiwanese Vice President Chen Chien-jen.

Pope Francis maintains the church’s right to freely choose religious leaders, but the Chinese Communist Party insists that it should dictate the process of selection. Conflicts such as this have forced mainland Chinese Catholics to choose between a government-sponsored church that rejects the primacy of the pope and worshipping — as apparently half of the estimated 9 million to 12 million Chinese Catholics do — in unregistered or “underground” churches that proclaim loyalty to Rome.

Despite such challenges, relations have lately smoothed, due to concerted efforts by the Catholic Church, which remains interested in ministering to its flock across the Taiwan Strait. Critics of these negotiations, such as Cardinal Joseph Zen of Hong Kong, have raised concerns that the Vatican is being hoodwinked by the Chinese Communist leadership and that the church might backslide on matters of religious and human rights. Other observers are more optimistic, believing talks will create space for the Catholic Church to develop in China without conceding too much ground on spiritual tenets.

Vatican and China watcher Francesco Sisci anticipates a wide-ranging “concordat” that secures the church and pope’s primacy in religious teaching while deferring to the Chinese government in worldly matters. The gray zone in between would require constant negotiation. Given the resurgence of faith communities in China in recent years, this type of agreement may even open the doors for broader religious freedom, by fully separating civil affairs from spiritual ones, thus insulating them from too much state interference.

But the opening up has created fears that the Vatican might sell out Taiwan to purchase better relations with China. The top Vatican diplomat, Parolin, later attempted to downplay such talk, but there is good reason for concern: China’s diplomatic track record reveals that it has regularly sought to monopolize diplomatic ties with foreign states, to the exclusion of Taiwan, so a future break in official Vatican-Taiwan relations is not inconceivable.

However, indulging in such a crass diplomatic quid pro quo would not just deplete the Vatican’s political capital but undermine the very source of it. The Holy See numbers among the few global entities that are not only subject to international norms but also granted the moral authority to explicitly define them. Thus, unlike for most states, outright realpolitik is not an option for the Vatican if it wants to retain its credibility in the eyes of believers. At a time of democratic retreat across the globe, support for a fiercely free Taiwan is particularly important.

Given the historical persecution of Catholics in China and the Communist Party’s abominable record on human rights, both clergy and lay people — even the pope’s supporters — have expressed serious reservations about his approach. Will the Vatican dilute its unique legitimacy by accommodating a regime it previously denounced? Chinese Catholics broadly support religious freedom, but those who have resisted the regime for decades remain wary. Other commentators wonder: Are these far-reaching hopes guided by a realistic understanding of China or imprudent idealism? Could papal diplomats simply be too eager to reach a historic accord with a regime that has taken advantage of foreign naiveté?

In the meantime, Taiwanese allies in heavily Catholic Central America will be closely watching the church’s next steps. Taiwanese diplomats fear a major rapprochement between the Vatican and China could initiate a “domino effect” of other countries relinquishing long-term friendship with the island in exchange for new relations with Beijing. The move by São Tomé, a heavily Catholic country, has only added to these worries.

At one end of the spectrum, the status quo features exclusive recognition of Taiwan by the Vatican, with no official ties to China. At the other end, the most extreme scenario would be if the Vatican offered outright recognition of China and completely derecognized Taiwan. This would come across as wholesale abandonment of Taiwan and its Catholic community, even if important spiritual ties were to remain. Though the church is most influential through the parishes in which it ministers, not necessarily the papal nuncios who reside in the capital, Taiwan symbolically losing its last official ally in Europe will hurt.

As an alternative to sole recognition of Taiwan, a growing number of Taiwanese are hoping the Vatican could opt for “dual recognition.” Citizen activists most recently raised this idea in an open letter to Taiwanese Vice President Chen. This option would preserve Taiwan’s ties to the Vatican but would not require the Catholic Church to shun relations with China.

For anyone interested in maintaining global harmony, especially Taiwanese who would prefer to diversify their international relationships, this may even be more favorable than exclusive recognition. Other countries could see the possibility of simultaneously recognizing Taipei without rejecting Beijing and peaceably develop relations with both. The Vatican would achieve its religious aims while opening creative new horizons for peaceful international coexistence.

Finally, it is possible for the Holy See and China to reach a significant accommodation — one that resolves issues of episcopal appointments, freedom of worship, and numerous other religious matters — without addressing diplomatic recognition at all. Were the “Catholic question” to be settled as a purely religious affair, it would uphold the social interests of the Chinese people, maintain cross-strait stability, and burnish their global stature while eliding the thorny international politics.

The choice here is not only for the Vatican but Beijing as well. Despite the habitual temptation to leverage negotiations for overwrought nationalistic purposes, if Chinese officials were to forgo petty demands about Taiwan, they could instead build up durable goodwill with multiple actors. Every time China chooses to humiliate Taiwan, it frustrates the Taiwanese public and drives the wedge deeper between the two societies. Beijing also comes across as a leering international bully. By embracing its untraditional role of both state and religious arbiter, the church could play the good-faith broker, intoning magnanimity and reminding stakeholders to focus on substantive benefits, thus upholding respect for the humanity of all concerned.

Unfortunately, given China’s belligerent attitude on Taiwan’s foreign relations and the Communist Party’s stoking of nationalism for domestic purposes, better arrangements may not be forthcoming. Furthermore, if the Vatican comes across as a supplicant requesting access to the Middle Kingdom, instead of a world-class institution with unparalleled social influence, this also further reduces its negotiating power.

Given changing complexities across the strait, one hopes the issue will never become so crude as the Vatican one day horse-trading Taiwan for a chance to expand its influence in China. And although recent negotiations center on spiritual matters, political considerations will undoubtedly seep into the calculus.

Still, when Pope Francis is involved, one cannot help but hope for wiser, gentler solutions coming to pass. In these uncertain times, ethical global leadership is ever more important. It would be a shame if the Vatican abdicated its claim to it.</s>BEIJING, Dec 22 (Reuters) - China on Thursday dismissed accusations from Taiwan that it engaged in "dollar diplomacy" to get Sao Tome and Principe to ditch ties with the self-ruled island, saying a petty Taiwan was besmirching China's good name.

The tiny West African state's decision this week has angered Taiwan, which says the move will not help already strained relations with China.

Taiwan says China took advantage of Sao Tome's financial woes to push its "one China" principle, that states Taiwan is part of China, ineligible for diplomatic recognition, adding Taiwan would not exchange cash for diplomatic favours.

Chinese Foreign Ministry spokeswoman Hua Chunying said on Thursday the "one China" principle was a common consensus of the international community, and that China welcomed Sao Tome back on to the correct track of recognising this.

"How can the 'one China' principle be traded for money? The Chinese government has never traded away its principles," she told a daily news briefing.

"As for what certain people say in Taiwan, I can only say don't gauge the heart of a gentleman with your own mean measure."

Despite Sao Tome's announcement, China has yet to formally say if it has now established formal diplomatic relations with the former Portuguese colony, and Hua said she had no further information on that.

She did however confirm that China had established a liaison office in Sao Tome in November 2013 for trade and cultural exchanges, and that trade between the two was worth just $8 million in 2015.

Sao Tome and Principe's tiny island economy is heavily dependent on cocoa exports but its position in the middle of the oil-rich Gulf of Guinea has raised interest in its potential as a possible oil and gas producer.

China and Taiwan have over the years tried to poach each other's allies, often dangling generous aid packages in front of developing nations.

China is deeply suspicious of Taiwan President Tsai Ing-wen, who it thinks wants to push for the island's formal independence, though she says she wants to maintain peace with China.

China's claim to Taiwan has shot back into the spotlight since U.S. President-elect Donald Trump broke diplomatic protocol and spoke with Tsai this month, angering Beijing.

Trump has also questioned the "one China" policy which the United States has followed since establishing relations with Beijing in 1979, under which the United States acknowledges the Chinese position that Taiwan is part of China. (Reporting by Ben Blanchard; Editing by Nick Macfie)</s>TAIPEI - Taiwan has lost one of its 22 diplomatic allies after the West African island of São Tomé and Príncipe cut official bilateral ties, the first nation to do so after President Tsai Ing-wen was sworn into office in May.

The move, which comes amid frosty ties between China and Taiwan, is seen by analysts and observers as a sign that Beijing is tightening the diplomatic noose around Taipei, which it regards as a breakaway province, for not acknowledging the “one China” principle.

Taiwan’s Presidential Office said on Wednesday that it regretted Sao Tome’s move, adding that while it is willing to do its utmost to assist its allies, it will not “use money to engage in diplomatic competition”.

In a statement that was posted on its website, the Presidential Office also accused Beijing of taking advantage of Sao Tome’s financial difficulties to enforce the “one China” principle.

“This practice not only hurts the feelings of the Taiwan people but also destabilises cross-strait relations,” said the statement.

Taiwan will now have 21 diplomatic allies, most of them small and impoverished countries in Latin America, Africa and the Pacific that have benefited from the financial aid that Taiwan provides.

“China expresses appreciation of this, and welcomes Sao Tome back onto the correct path of the ‘one China’ principle,” the Chinese Foreign Ministry said in a statement.

Beijing, however, did not say explicitly if it will establish diplomatic ties with São Tomé.

Responding to questions from reporters on Wednesday, China’s Taiwan Affairs Office spokesman An Fengshan said: “We firmly adhere to the ‘one China’ principle and stand firm in our opposition of Taiwan’s independence, which will gain more and more recognition and support from the international community.”

Speaking at a press conference on Wednesday morning, Foreign Minister David Lee said the Taiwanese government “deeply regrets and condemns” the move, which he called “abrupt and unfriendly”.

Taiwan was “not able to satisfy the nation’s (Sao Tome’s) huge financial gap”, he said.

Taiwan had reportedly rejected Sao Tome’s request for NT$6.4 billion (S$290 million) in financial aid.

While Mr Lee did not confirm the figure, he said the amount was “astronomical” for a nation with a population of some 150,000.

Saying that Taiwan will not indulge in “dollar diplomacy”, Mr Lee added Taiwan will terminate its relations with Sao Tome to “maintain its national dignity”.

Taiwan will continue to seek a voice in the international space, he said.

The Ministry of Foreign Affairs (Mofa) said in a statement that since diplomatic relations were established in May 1997, Taiwan had “actively assisted” São Tomé in advancing its national development. The bilateral cooperation covered areas such as public health, agriculture, infrastructure, energy, and education.

The Mofa statement highlighted an instance when a team of Taiwanese malaria prevention advisers were despatched to São Tomé to help reduce its malaria rates from 50 per cent in 2003 to 1.01 per cent in 2015.

Taiwan’s circle of diplomatic allies has been shrinking since it lost its United Nations seat to Beijing in 1971. The next two decades saw most major states switching diplomatic recognition from Taiwan to China, with Japan doing so in 1972 and the United States in 1979.

A diplomatic truce of sorts was in place when the pro-unification Kuomintang’s Ma Ying-jeou was President from 2008 until this year. While some of Taiwan’s allies were keen to defect and reap the benefits of formal ties with the world’s second-largest economy, Beijing had rebuffed most of their overtures to support Mr Ma, who endorsed the 1992 Consensus and made closer cross-strait ties a centrepiece of his government.

The 1992 Consensus is a tacit agreement that there is only one China, with each side having its own interpretation of what it means. China, which sees Taiwan as a breakaway province to be reunited into the fold eventually, sees the consensus as crucial to stable cross-strait relations.

But Ms Tsai has not acknowledged it, which resulted in an impasse in cross-strait relations. China revealed that it cut off all official communication with the island after Ms Tsai became President.

The latest news will no doubt put a dent on Ms Tsai’s upcoming trip to Central America as she seeks to step up the charm offensive with Taiwan’s remaining diplomatic allies, including Nicaragua, Guatemala, El Salvador and Honduras.

Analysts and observers say Sao Tome’s move is a sign that China has the upper hand in the “diplomatic game” against Taiwan.

Tamkang University’s political expert Edward Chen I-hsin said Taiwan is “losing its bargaining chips” and it will just become more difficult in the coming years for Taiwan to hold on to its remaining allies.

“China has deeper pockets to convince allies that they have more to gain by ditching ties with Taiwan and establishing ties with the mainland,” said Professor Chen.

Ruling Democratic Progressive Party legislator Lo Chih-cheng, who has been Ms Tsai’s long-time adviser on international affairs, said the government will monitor Beijing’s diplomatic moves.

“It is no secret that China wants to push Taiwan into a corner and force it to accept the ‘one China’ principle.

“But such offensive moves will not be helpful to make Taiwan concede. We don’t want to engage in diplomacy warfare but a win-win solution for both sides to establish stable cross-strait relations.”
São Tomé and Príncipe breaks relations with the island country of Taiwan.