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. 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. 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. 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. “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 severs diplomatic ties with Taiwan and establishes formal relations with China.