Taiwan has expressed “deep anger and regret” after losing one of its few diplomatic allies, deepening the island’s international isolation.
He said Taiwan was also cutting its diplomatic ties with Panama to “safeguard” the “nation’s sovereignty and dignity.”
China views Taiwan as an integral part of its territory that is to be taken by force if necessary. Beijing has missiles pointed at the island.
Panama’s moves leaves Taiwan with only 20 diplomatic allies in the world, mainly small nations in Latin America and the Caribbean. In December 2016, the African island nation of Sao Tome and Principe switched recognition to Beijing.
China and Taiwan — officially the People’s Republic of China and the Republic of China — separated in 1949 following the Communist victory on the mainland after a civil war.
The two sides have been governed separately since, though a shared cultural and linguistic heritage mostly endures — with Mandarin spoken as the official language in both places.