FILE PHOTO - Taiwan's President Tsai Ing-wen listens with her counterpart Panama's Juan Carlos Varela to the national anthem during a welcome ceremony before a meeting at the Presidential Palace in Panama City, Panama June 27, 2016. REUTERS/Carlos Jasso/File Photo

PANAMA CITY (Reuters) - Panama’s government said on Monday it had broken diplomatic ties with Taiwan as it established formal relations with China.

In a statement, the Panamanian government said it recognized there was “only one China in the world” and that Taiwan formed an inalienable part of Chinese territory.

“The Panamanian government is today breaking its ‘diplomatic ties’ with Taiwan, and pledges to end all relations or official contact with Taiwan,” the statement read.</s>Guatemala City/Singapore: Panama is opening diplomatic relations with China, the latest blow to Taiwan as Beijing’s leaders seek to isolate the self-governed island.

Panamanian President Juan Carlos Varela announced the move in a national address on Monday. China is the second-biggest user of the Panama Canal and has played a key role in sectors from banking to telecommunications, he said, adding that Taiwan had been a great friend.

“We have taken a historic step,” Varela said. “Both countries opt for the connection of a world that is more and more integrated, which creates a new era of opportunities for a relationship that we are starting today.”

The policy shift would reduce to 20 the number of nations that recognize the government in Taipei, rather than Beijing—the latest success in China’s effort to squeeze Taiwanese President Tsai Ing-wen. The loss of Panama, one of Taiwan’s oldest diplomatic friends, may prompt others such as the Vatican or Paraguay to follow suit.

“China-Panama relations have opened a new chapter,” China’s foreign minister Wang Yi said on Tuesday at a briefing and communique signing ceremony in Beijing. He clinked champagne glasses with Isabel de Saint Malo de Alvarado, Panama’s vice-president and foreign minister.

“We recognize the PRC is the only government of China,” Saint Malo said, referring to the People’s Republic of China. She said Panama was severing ties with Taiwan and hoped relations with China would lead to trade investment and tourism opportunities, especially “exporting more goods from Panama to China”. Wang welcomed Panama to participate in China’s Belt and Road Initiative.

“The break carries symbolic significance, given that official diplomatic ties go back a long way,” said Ja Ian Chong, an associate professor with the National University of Singapore who specializes in Asia-Pacific relations. “There may be a domino effect in terms of de-recognition.”

The Communist Party considers Taiwan a province and has criticized Tsai’s refusal to accept that both sides belong to “One China”, its precondition for ties. Since her pro-independence Democratic Progressive Party was swept to power last year, Beijing has attempted to woo Taiwan’s remaining diplomatic partners. In December, it won over the tiny West African nation of Sao Tome and Principe.

Taiwan will re-evaluate relations with China, Joseph Wu, the secretary-general of the presidential office, said in Taipei after Panama’s decision. The presidential office expressed “regret and dissatisfaction” with Panama and said Taiwan wouldn’t use money to compete on the diplomatic stage.

“Beijing’s suppression of Taiwan’s international space is not just an open threat to the Taiwanese people’s right to life, it is a provocation of the peace and stability across the Taiwan Strait and the region,” the office said in a statement. “We strongly condemn this.”

Taiwan’s ties with Panama, which date back more than a century, have frayed as China grew to become the world’s largest trading nation. Last year, Panama’s trade with China was almost 50 times greater than with Taiwan, according to statistics from both governments.

The island avoided Panama’s defection in 2009 only because Beijing rejected its overtures in what was seen as a favour to then-President Ma Ying-jeou, who accepted the “One China” framework as part of a broader effort to increase trade ties across the Taiwan Strait.

During a visit last year on her first overseas trip, Tsai called Panama a “good friend” and praised the country for treating Taiwan with sincerity while attending a ceremony marking the expansion of the Panama Canal. Still, it portended trouble ahead: as she watched, a Chinese ship made the first passage through the waterway. Bloomberg</s>Panama's government said on Monday it had broken diplomatic ties with Taiwan as it established formal relations with China.

PANAMA CITY: Panama's government said on Monday it had broken diplomatic ties with Taiwan as it established formal relations with China.

In a statement, the Panamanian government said it recognised there was "only one China in the world" and that Taiwan formed an inalienable part of Chinese territory.

"The Panamanian government is today breaking its 'diplomatic ties' with Taiwan, and pledges to end all relations or official contact with Taiwan," the statement read.</s>Beijing: In a diplomatic coup for China, Panama on Tuesday cut long-standing diplomatic ties with Taiwan and established relations with Beijing as the cash-rich Communist giant exerted its economic clout to wean away handful of allies of the self-ruled island.

Regarded as big blow for Taiwan, China and Panama signed a joint communique here formally establishing full-fledged diplomatic relations.

They signed the joint communique in which Panama has recognised One China, meaning that Taiwan is part of the Chinese mainland.

Panamanian President Juan Carlos Varela said on Monday that Panama was upgrading its commercial ties with China.

"I'm convinced that this is the correct path for our country," Varela said.

Taiwan expressed "anger and regret" over the "very unfriendly" diplomatic turn by Panama that "yielded to economic interests by the Beijing authorities".

It accused Panama of "bullying" Taiwan while "ignoring the many years of friendship" between the two countries, and added it would "not compete with the Beijing authorities for money diplomacy".

Last June Taiwan's leader Tsai Ing-wen, a strong advocate of Taiwan's independence from China visited Panama, on her first overseas trip as President.

Taiwan's Foreign Ministry condemned the move, alleging the island nation had demanded a huge amount of financial support.

The move by Panama comes as China began construction of a container port with natural gas facilities in northern province of Colon last week.

For long, Panama has maintained that it has commercial ties with China and diplomatic ties with Taiwan.

Taiwan, which broke away from China in 1949, is coming under immense pressure from China's push with huge funds of Belt and Road Initiative. Panama is the latest country to cut ties with Taiwan.

In December last year, the African island nation of Sao Tome and Principe made a similar move. Now only 20 countries have diplomatic relations with Taiwan.

Taiwan has left with few allies, mostly small countries. They include Belize, El Salvador, Haiti, Nicaragua, St Kitts and Nevis, St Vincent & the Grenadines, the Dominican Republic, Guatemala, Paraguay, Honduras and Saint Lucia In Africa: Burkina Faso and Swaziland, The Holy See, Kiribati, Nauru, the Solomon Islands, Tuvalu, the Marshall Islands and Palau.

 Panama did not give any reason for changing its diplomatic allegiance but there has been growing economic co- operation with China in recent years.

China's Foreign Ministry also released a statement saying that "the Chinese government and its people highly appreciate and warmly welcome" the move by Panama.

The United Nations in 1971 switched diplomatic recognition to Beijing's People's Republic of China (PRC) and most countries have since followed that lead in order not to antagonise the economic giant which is the world's second largest economy.

Chinese companies are developing ports in Panama, and Chinese state firms are said to have expressed interest in developing the land around the Panama Canal once the country opens a tender for it later this year, media reports said.

The Panama Canal is a vital shipping route. As China expands its global trade ambitions with its One Belt One Road infrastructure-building initiative, access to the eastern coasts of both South America and the US is expected to be of growing importance for Beijing, the report said.</s>Beijing: In a major blow to Taiwan, Panama on Tuesday broke off diplomatic ties with it and established relations with China as cash-rich Beijing exerted its economic clout to wean away handful allies of Taipei.

Regarded as a diplomatic coup for Beijing, China and Panama signed a joint communique, formally establishing diplomatic relations.

They signed the joint communique in which Panama has recognised 'One China', which means that Taiwan is part of the Chinese mainland.

Taiwan expressed "anger and regret" over the "very unfriendly" diplomatic turn by Panama that "yielded to economic interests by the Beijing authorities".

It accused Panama of "bullying" Taiwan while "ignoring the many years of friendship" between the two countries, and added it would "not compete with the Beijing authorities for money diplomacy".

Last June Taiwan's leader Tsai Ing-wen, a strong advocate of Taiwan's independence from China visited Panama, on her first overseas trip as president. The switch by Panama leaves Taiwan with a handful of allies around the world.

Few months ago, Sao Tome and Principe has switched sides. Taiwan's foreign ministry condemned the move, alleging the island nation had demanded a huge amount of financial support.

The move by Panama comes as China began construction of a container port with natural gas facilities in northern province of Colon last week.

For long, Panama has maintained that it has commercial ties with China and diplomatic ties with Taiwan.

Taiwan, which broke away from China in 1949, is coming under immense pressure from China's push with huge funds of Belt and Road Initiative. Panama is the latest country to cut ties with Taiwan.

Taiwan has left with few allies, mostly small countries. They include Belize, El Salvador, Haiti, Nicaragua, St Kitts and Nevis, St Vincent and the Grenadines, the Dominican Republic, Guatemala, Paraguay, Honduras and Saint Lucia In Africa: Burkina Faso and Swaziland, The Holy See, Kiribati, Nauru, the Solomon Islands, Tuvalu, the Marshall Islands and Palau.

Panama did not give any reason for changing its diplomatic allegiance but there has been growing economic cooperation with China in recent years, BBC reported.

Chinese companies are developing ports in Panama, and Chinese state firms are said to have expressed interest in developing the land around the Panama Canal once the country opens a tender for it later this year.

The Panama Canal is a vital shipping route. As China expands its global trade ambitions with its One Belt One Road infrastructure-building initiative, access to the eastern coasts of both South America and the United States is expected to be of growing importance for Beijing, the report said.</s>Panama established formal diplomatic ties with China and broke with Taiwan on Monday in a major victory for Beijing that bolsters its claims of sovereignty over what it regards as a renegade island.

PANAMA CITY/BEIJING: Panama has established diplomatic ties with China and broken with Taiwan in a major victory for Beijing, which continues to lure away the dwindling number of countries that have formal relations with the self-ruled island.

Panamanian President Juan Carlos Varela said in a televised address on Monday that Panama was upgrading its commercial ties with China and establishing full diplomatic links with the second most important customer of its key shipping canal.

"I'm convinced that this is the correct path for our country," Varela said.

Taiwan's government said it was sorry and angry over Panama's decision, and said it would not compete with China in what it described as a "diplomatic money game".

"Our government expresses serious objections and strong condemnation in response to China enticing Panama to cut ties with us, confining our international space and offending the people of Taiwan," David Lee, Taiwan's minister of foreign affairs, told a briefing in Taipei.

Taiwan would immediately end cooperation with and assistance for Panama, and evacuate embassy and technical personnel "in order to safeguard our national sovereignty and dignity", Lee said.

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

China and Taiwan have tried to poach each other's allies over the years, often dangling generous aid packages in front of developing nations, although Taipei struggles to compete with an increasingly powerful China.

Panama is the second country to switch its recognition to Beijing since Tsai took office last year, following a similar move by Sao Tome and Principe in December, trimming to 20 the number of countries that formally recognise Taiwan.

Taiwan had as many as 30 diplomatic allies in the mid-1990s, and its remaining formal ties are with mostly smaller and poorer nations in Latin America and the Pacific.

China's Foreign Minister Wang Yi met his counterpart from Panama, Isabel de Saint Malo, in Beijing on Tuesday and signed a joint communiqué establishing ties.

"This is a historic moment. China-Panama relations have opened a new chapter," Wang said, describing Panama's decision as in "complete accordance" with its people's interests and "in keeping with the times".

"The two countries' governments agreed to develop good friendly relations on the principles of mutual respecting sovereignty and territorial integrity, non-aggression, mutual non-interference in internal affairs, mutual benefit, and peaceful coexistence," China's Foreign Ministry said in a statement on its website.

Panama's government said in a statement that it recognised there was only one China, with Taiwan belonging to the Asian giant, and that it was severing ties with Taipei.

"The Panamanian government is today breaking its 'diplomatic ties' with Taiwan, and pledges to end all relations or official contact with Taiwan," the statement said.

The establishment of links with Panama is a coup for China, which has been showering largesse on countries throughout Central America in recent years in an attempt to get them to break ties with Taiwan.

As recently as December, Panama's deputy foreign minister had said he did not expect any change in Panama's relations with Taiwan or China.

Panama is one of Taiwan's oldest friends, but some diplomats in Beijing had speculated that the Central American country could become the next nation to break ties.

Tsai visited Central American allies earlier this year but did not stop in Panama.

In Beijing, Panama's foreign minister de Saint Malo said President Varela had expressed 10 years ago his interest in establishing ties with China, and that she hoped the move would lead to trade, investment and tourism opportunities, especially for "exporting more goods from Panama to China".

Monday's diplomatic move could also raise questions about the future of a Chinese-backed project to build another Central American waterway to rival the Panama Canal in Nicaragua.

Earmarked at a cost of US$50 billion, the Nicaraguan scheme was met with widespread incredulity when it was announced in 2013, and critics have raised questions about its feasibility.</s>Panama has established diplomatic ties with China and broken with Taiwan in a major victory for Beijing, as it lures away the dwindling number of countries that have formal relations with the self-ruled island.

Panamanian President Juan Carlos Varela said in a televised address on Monday that Panama was upgrading its commercial ties with China and establishing full diplomatic links with the second most important customer of its key shipping canal.

“I’m convinced that this is the correct path for our country,” Varela said.

Taiwan’s government said it was sorry and angry over Panama’s decision, and it would not compete with China in what it described as a “diplomatic money game”.

“Our government expresses serious objections and strong condemnation in response to China enticing Panama to cut ties with us, confining our international space and offending the people of Taiwan,” David Lee, Taiwan’s minister of foreign affairs, told a briefing in Taipei.

Taiwan would immediately end cooperation with and assistance for Panama, and evacuate embassy and technical personnel “in order to safeguard our national sovereignty and dignity”, Lee said.

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

China and Taiwan have tried to poach each other’s allies over the years, often dangling generous aid packages in front of developing nations, although Taipei struggles to compete with an increasingly powerful China.

Panama is the second country to switch its recognition to Beijing since Tsai took office last year, following a similar move by Sao Tome and Principe in December, trimming to 20 the number of countries that formally recognise Taiwan.

Taiwan had as many as 30 diplomatic allies in the mid-1990s, and its remaining formal ties are with mostly smaller and poorer nations in Latin America and the Pacific.

China’s Foreign Minister Wang Yi met his counterpart from Panama, Isabel de Saint Malo, in Beijing on Tuesday and signed a joint communiqué establishing ties.

“This is a historic moment. China-Panama relations have opened a new chapter,” Wang said, describing Panama’s decision as in “complete accordance” with its people’s interests and “in keeping with the times”.

Panama said it recognised there was only one China, with Taiwan belonging to the Asian giant, and that it was severing ties with Taipei.

“The Panamanian government is today breaking its ‘diplomatic ties’ with Taiwan, and pledges to end all relations or official contact with Taiwan,” it said in a statement.

The establishment of links with Panama is a coup for China, which has been showering largesse on countries in Central America in recent years in an attempt to get them to break with Taiwan.

As recently as December, Panama’s deputy foreign minister had said he did not expect any change in Panama’s relations with Taiwan or China.

Panama is one of Taiwan’s oldest friends, but some diplomats in Beijing had earlier speculated that the Central American country could become the next nation to break ties.

Tsai visited Central American allies this year but did not stop in Panama.

In Beijing, Panama’s foreign minister de Saint Malo said President Varela had expressed 10 years ago his interest in establishing ties with China, and that she hoped the move would lead to trade, investment and tourism opportunities, especially for “exporting more goods from Panama to China”.

Matt Ferchen, an expert on China’s relations with Latin America at the Carnegie-Tsinghua Center for Global Policy in Beijing, said Panama’s switch was bad news for Taiwan’s relations in Central America, where it still has ties with El Salvador, Guatemala, Honduras and Nicaragua.

“It sets a sort of precedent that could very well influence the rest of the region,” Ferchen said.

In addition to financial support, China offers the lure of growing international influence.

Still, Ferchen said it was premature to read Panama’s shift as a big gain for China’s influence in the backyard of the United States.

“If it becomes perceived that way in the United States among Congress and the U.S. presidential administration, or the U.S. military, you could really be stepping on some sensitive feet,” he said.</s>(PANAMA CITY) — Panama established formal diplomatic ties with China and broke with Taiwan on Monday in a major victory for Beijing that bolsters its claims of sovereignty over what it regards as a renegade island.

Panamanian President Juan Carlos Varela said in a televised address Panama was upgrading its commercial ties with China and establishing full diplomatic links with the second most important customer of its key shipping canal.

"I'm convinced that this is the correct path for our country," Varela said.

Panama's government said in a statement that it recognized there was only one China, with Taiwan belonging to the Asian giant, and that it was severing ties with Taipei.

"The Panamanian government is today breaking its 'diplomatic ties' with Taiwan, and pledges to end all relations or official contact with Taiwan," the statement said.

China has commended Panama for its decision, Chinese state television reported.

The establishment of links with Panama is a coup for China, which has been showering largess on countries throughout Central America in recent years in an attempt to get them to break ties with Taiwan.

As recently as December, Panama's deputy foreign minister had said he did not expect any change in Panama's relations with Taiwan or China.

Panama is one of Taiwan's oldest friends, but some diplomats in Beijing had speculated that the Central American country could become the next nation to break ties.

Taiwanese President Tsai Ing-wen visited Central American allies earlier this year but did not stop in Panama.

Monday's diplomatic move could also raise questions about the future of a Chinese-backed project to build another Central American waterway to rival the Panama Canal in Nicaragua.

Earmarked at a cost of $50 billion, the Nicaraguan scheme was met with widespread incredulity when it was announced in 2013, and critics have raised questions about its feasibility.</s>Panama on Monday switched diplomatic relations from Taiwan to China. The Panamanian government said it recognised there was “only one China” and considered Taiwan to be a part of the country, reported the BBC.

Taiwan accused Panama of “bullying” and expressed “anger and regret”. “Our government expresses serious objections and strong condemnation in response to China enticing Panama to cut ties with us, confining our international space and offending the people of Taiwan,” said David Lee, Taiwan’s minister of foreign affairs.

China considers the self-governing island its own territory.

The change was announced by Panama President Juan Carlos Varela in a televised address. Varela said the decision represented the “correct path for our country.”

Panama and China, in a joint statement on Monday evening, said they were recognising each other and establishing ambassadorial-level relations the same day, reported The Guardian. “The government of the republic of Panama recognises that there is but one China in the world, that the government of the People’s Republic of China is the sole legal government representing the whole of China, and that Taiwan is an inalienable part of China’s territory,” the statement read. “The government of the Republic of Panama severs ’diplomatic relations’ with Taiwan as of this day and undertakes not to have any more official relations or official exchanges with Taiwan.”

Currently, only 20 countries have diplomatic relations with Taiwan. Panama is the latest country to switch sides. In December 2016, the African island nations of Sao Tome and Principe made a similar move.</s>Panama cuts formal ties with Taiwan in favour of China

Joint statement between President Juan Carlos Varela and Beijing says ‘Taiwan is an inalienable part of China’s territory’

Panama has switched diplomatic relations from Taiwan to China, handing a major victory to Beijing in its drive to isolate the self-governing island it claims as its own territory.

Panama’s president, Juan Carlos Varela, announced the change – which entails breaking off formal relations with Taiwan – in a televised address, saying it represented the “correct path for our country”.
Panama severs diplomatic ties with Taiwan and establishes formal relations with China.