SINGAPORE _ Panama is opening diplomatic relations with China, the latest blow to Taiwan as Beijing's leaders seek to isolate the self-governing island.
Panama's President Juan Carlos Varela announced the move in a national address on Monday night. China is the second-biggest user of the Panama Canal and has played a key role in sectors from banking to telecommunications, he said. He called Taiwan a great friend and said he hoped for a constructive reaction.
In the speech, Varela said he saw "a new era of opportunities," adding that he's convinced that China is "the correct country for our country."
The policy shift would reduce to 20 the number of nations that recognize the government in Taipei, rather than Beijing, as representing China. The Communist Party considers Taiwan a province and has criticized President Tsai Ing-wen's refusal to accept that both sides belong to "One China," its precondition for ties.
Taiwan presidential office spokesman Alex Huang said earlier that he couldn't comment before any announcement by Panama.
In December, the West African island nation of Sao Tome and Principe cut diplomatic relations with Taiwan. Beijing formally re-established relations with Gambia last March _ another former Taiwanese partner in West Africa _ and has stepped up communications with others, such as the Vatican.
