Honduras has taken a major step towards aligning itself with China after cutting ties with Taiwan and setting diplomatic relations on Sunday. This decision comes as a powerful signal of China's increasing influence in Latin America and further reduces the number of countries recognizing Taiwan as an independent state. .
The Honduran Foreign Ministry issued a statement stating that it recognises "only one China in the world" and that Beijing is the "only legitimate government that represents all of China" in response. In response, Taiwan's Foreign Minister Joseph Wu said that Honduras had asked Taiwan for billions of dollars of aid, and compared his proposals with China's only, only to be dismissed by the Castro Government. Taiwanese President Tsai Ing-wen said her government would not "engage in a meaningless contest of dollar diplomacy with China," focusing on that China had persistently used various means to suppress Taiwan's international participation. .
In the decades leading up to this decision, China has funneled billions of dollars into investment and infrastructure projects across Latin America, which has translated into rising power for China and a growing number of allies. In Honduras it has come in the form of the construction of a hydroelectric dam project in central Honduras by Chinese company SINOHYDRO with approximately $300 million in Chinese government financing. .
Taiwan still has ties with Belize, Paraguay and Guatemala in Latin America and Vatican City, most of which are island nations in the Caribbean and the South Pacific, along with Eswatini in southern Africa. Political analyst Graco Pérez in Honduras said Beijing's narrative would highlight the benefits, including investment and job creation, but that it may not be what had been offered. .
Despite China's campaign of isolation, Taiwan maintains robust informal ties with more than 100 other countries, most importantly the United States. Taiwanese President Tsai Ing-wen is set to begin a 10-day trip with visits to Guatemala and Belize on Wednesday. The US State Department has stated that it would continue to deepen its engagement with Taiwan in spite of its diplomatic relations with Beijing. .
The dispute between Taiwan and China dates back to the end of the Chinese Civil War in 1949, when the nationalists fled to the island and established an administration there. Since then, the ruling Chinese Communist Party has claimed sovereignty over Taiwan, but has never ruled the island. .
The decision of Honduras to cut ties with Taiwan and establish diplomatic relations with China is a major blow to Taiwan's international standing and a demonstration of China's growing influence in Latin America.