DIPLOMACY

Panama Breaks With Taiwan in Favor of China

Vows to abide by the One China policy.

Panama has cut off formal relations with Taiwan in favor of closer ties to China. Panamanian President Juan Carlos Varela announced the news in a televised addressed on Monday night, calling the decision the “correct path for our country.” Noting that China is the second-biggest user of the Panama Canal and a major player in banking and telecommunications sectors, Varela hailed the “historic step” of building closer ties and said it “creates a new era of opportunities.” The news comes as China seeks to isolate Taiwan on the world stage and get international leaders to recognize the “One China” policy, which holds that there is only one Chinese government and world leaders must deal exclusively with Beijing, not Taiwan. A statement from the Panamanian government said authorities vowed to recognize that there is “only one China in the world” and that Taiwan is a 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 said.