Instant Alert: Panama switches diplomatic recognition from Taiwan to China

MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE   Panama switches diplomatic recognition from Taiwan to China by on Jun 12, 2017, 10:06 PM Advertisement PANAMA CITY (AP) — Panama has switched diplomatic recognition from Taiwan to China after a century of having only commercial relations with the Asian giant. Panamanian President Juan Carlos Varela announced the change, which entails breaking off formal relations with Taiwan. Varela said in a televised address that it is the "correct path for our country." A joint statement Monday evening says Panama and China are recognizing each other and establishing ambassador-level relations as of the same day. It adds that Panama recognizes only one legitimate China and that Taiwan "forms an inalienable part of Chinese territory." China is the second-biggest client of the Panama Canal and the leading provider of merchandise to a free-commerce zone in the Caribbean city of Colon. SEE ALSO: Chinese state companies are eyeing the Panama Canal for their next big projects   Share the latest business news with your network:    Email sent to:   |   Manage your email preferences   |   Unsubscribe Terms of Service   |   Privacy Policy Business Insider. 150 Fifth Avenue, New York, NY 10011