Panama has cut ties with Taiwan and established diplomatic relations with China, as Beijing intensifies efforts to isolate the self-governing island, which it considers Chinese territory.
Isabel Saint Malo, Panama’s foreign minister, signed a communiqué with her Chinese counterpart Wang Yi on Tuesday in Beijing to formalise the switch, leaving Taiwan with just 20 diplomatic allies.
Juan Carlos Varela, the president of the central American nation, said that signing up to Beijing’s “One China” principle would generate “great potential in all areas” including investment and job creation.
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