Panama Severs Diplomatic Relations with Taiwan, Embraces PRC

After more than a billion dollars in infrastructure investment, port acquisitions and the promise of riches, Panama has decided to sever ties with Taiwan and to embrace the PRC 

Panama last night announced it was establishing diplomatic relations with the People’s Republic of China, the latest in countries that have decided to sever ties with Taiwan and recognize the PRC. 

President Juan Carlos Varela Rodríguez made the announcement on national networks at 8:00p.m. Panama time. 

According to La Estrella de Panama, in recent years China has become one of the three largest users of the Panama Canal. In May 2016 Landbridge Group (China) purchased Margarita Island Port, Panama’s largest port. As part of the US$900 million deal to control Panama’s Margarita Island Port, Chinese interests have vowed heavy investments to upgrade port facilities and build a deepwater port capable of docking larger ships. Landbridge is also the firm that acquired the Port of Darwin in Australia’s Northern Territory. 

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