https://www.ft.com/content/9869ef7a-4fe7-11e7-bfb8-997009366969
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.
Beijing has tightened the
squeeze on Taiwan since the election last year of President Tsai Ing-wen and her pro-independence Democratic Progressive party.
The Chinese government has renewed a battle for diplomatic allies by
poaching the tiny African nation of São Tomé and Príncipe in December, hampering Taiwan’s participation in international forums and slashing the number of Chinese tourists that visit Taiwan.
Diplomats warned that other allies may follow Panama’s lead in abandoning Taiwan in search of improved political and economic ties with China.
“There will be a cascade,” said Jorge Guajardo, the former Mexican ambassador to China, who is now based in Washington. “The Dominican Republic, Nicaragua and Paraguay might try to do the same and the big catch for Beijing would be the Vatican.”
Panama’s defection is the latest diplomatic coup for Beijing, which is capitalising on the uncertainty surrounding President Donald Trump’s foreign policy by exerting its
influence from Southeast Asia to
South Korea.
“China is exercising smart power more often, while the US is retreating from mainstream international politics,” said Huang Kwei-bo, a professor of diplomacy at National Chengchi University in Taipei.
Most of the countries that recognise Taiwan are small, impoverished nations in Africa, the Pacific, Latin America and the Caribbean. But they play an important role in supporting Taiwan’s legitimacy and speaking out on its behalf in international organisations such as the United Nations, which does not recognise Taiwan’s government.
Panama was one of its most important partners, with the third-biggest economy among Taiwan’s diplomatic allies and control of the Panama Canal, a strategic shipping route.
Taiwan still has expansive political and economic relations with many countries that do not formally recognise it, including the US, Japan and China itself, which consumes about 40 per cent of Taiwan’s exports.
Taiwan’s presidential office condemned China’s moves to restrict its international relations. “This not only threatens the rights of the Taiwanese people, it is also a dangerous provocation to the peace and stability of the Taiwan Strait and the region at large,” it said.
Jonathan Sullivan, the director of the China Policy Institute at the University of Nottingham, said that Panama’s defection was “a substantial foreign policy hit” for Ms Tsai’s government, which is already suffering sinking approval ratings because of domestic problems.
He added that while Beijing would continue efforts to isolate Taiwan diplomatically, such a policy was unlikely to reverse the growing sense on the island of a separate Taiwanese identity.
In the decades after China was admitted to the UN in 1971, most countries established diplomatic relations with Beijing and de-recognised the Republic of China, as Taiwan is formally known.
But Taipei and Beijing have battled for the support of a handful of mostly developing nations.
This diplomatic war was halted during the administration of Ma Ying-jeou, the previous Taiwanese president, who tried to build closer ties with Beijing. But China ended the apparent truce after
Ms Tsai was elected.