Panamanian President Juan Carlos Varela announced the establishment of formal diplomatic relations with the People's Republic of China. This is undoubtedly a major blow to Taiwan's diplomatic efforts.
President Varela made this announcement in his national television address on Monday night in Panama and his Twitter.
He said in his speech, China is the second largest user of the Panama Canal, has played an important role in banking, telecommunications and other fields. He firmly believes that the establishment of diplomatic relations with China is a new era of opportunity. He said that China is the right choice for Panama.
Varela said that Taiwan was a great friend and expressed the hope that Taiwan would make a constructive response to it.
For the decision of Panama, the Taiwan presidential palace issued a six-point statement. Statement of the practice of Panama, said "highly regret and dissatisfaction". The statement also condemned the Beijing authorities to "suppress Taiwan 's international space" and "is a blatant threat to the rights of the people of Taiwan. It is also a blatant provocation of peace and stability between the Taiwan Strait and the region.
Panama and diplomatic relations with China, and Taiwan disconnected, so that Taiwan's diplomatic relations down to 20. Sao Tome and Principe, located in West Africa, have just announced their severance with Taiwan at the end of 2016.