CHINA-TAIWAN: PANAMA SEVERS TIES WITH TAIWAN

On June 12, 2017, Panama severed diplomatic relations with Taiwan in favor of recognizing China. Taiwan’s Ministry of Foreign Affairs expressed “indignation and regret” at the decision. It said that in addition to withdrawing its diplomatic mission, it would cease all bilateral cooperation and aid while asserting "our refusal to engage in checkbook diplomacy". In a statement issued on June 13, China’s Foreign Ministry said that the establishment of ties with Panama was done “in accordance with the interests and wishes of the peoples of both countries.” China's state-run news agency Xinhua said Panama acknowledged in a joint communiqué that the Beijing government is “the sole legal government representing the whole of China, and that Taiwan is an inalienable part of China’s territory.” The news is a major setback for Taiwan’s president, Tsai Ing-wen. She visited Panama last summer, shortly after taking office, for the inauguration of President Juan Carlos Varela and the opening of an expanded Panama Canal. 


(Comment: The first ship to sail through the expanded Panama canal is a Chinese one. Only 19 countries and the Vatican now recognize Taiwan, officially known as the Republic of China. Many of those countries are in Central America, including Guatemala, Honduras and Nicaragua, and the decision by Panama, announced on June 12, appears to put those relationships in doubt.)








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