Honduras Cuts Ties with Taiwan in Favor of China, Signaling Growing Chinese Influence in Latin America

Honduras has announced that it is severing diplomatic relations with Taiwan and establishing ties with China, following years of wooing from Beijing. The Honduran Foreign Ministry released a statement on Wednesday stating the government’s recognition of only one China in the world and seeing Beijing as the only legitimate government representing all of China.

Dispute over Diplomatic Recognition

The dispute over diplomatic recognition between China and Taiwan dates back to the civil war in 1949, which saw the communist forces led by Mao Zedong defeat the nationalist Kuomintang (KMT) and establish the People’s Republic of China on the mainland. The KMT was forced to flee to Taiwan and established the Republic of China, which initially enjoyed international recognition as the sole representative of China. However, in 1971, the United Nations recognized Beijing as the only legitimate government representing all of China, including Taiwan.

Since then, Taipei has become increasingly isolated, recognized by only 13 sovereign states worldwide, including Vatican City. In contrast, China has funneled billions of dollars into investment and infrastructure projects across Latin America as part of its Belt and Road Initiative, increasing its power and allies in the region.

Honduran Government’s Switch to Beijing

Taiwan was once a close ally of Honduras, providing aid for various development projects and trading agreements. However, Beijing has been alluring Honduras with multibillion-dollar investment promises for infrastructure projects like ports, highways, and industrial parks. The Honduran government sought $2.45 billion from Taiwan for various development projects like building a hospital and a dam while comparing proposals with China’s.

President Xiomara Castro had previously expressed her “fantasy” about doing business with China before being elected last November. Following this announcement on December 30th, political analysts and experts have warned about the implications of the newly formed ties between China and Honduras.

Taiwan Ends Relations to Safeguard Its Sovereignty and Dignity

Taiwan’s President Tsai Ingwen has responded to Honduras’ decision by stating that her government will not engage in “dollar diplomacy” with China. In sovereignty and dignity, Taiwan ended its relationship with Honduras rather than compete financially with Beijing for influence.

Despite its limited diplomatic allies, Taiwan remains a global leader in the supply of semiconductor chips, making it an important trading partner for many Western democracies. The loss of diplomatic recognition could impact Taiwan’s court of public opinion and be used as a political tool in presidential elections. However, Taiwan still retains robust informal ties with more than 100 other countries worldwide, including the United States.

Implications for China and Latin America

Analysts expect that Beijing’s narrative towards partners like Honduras would highlight benefits, but that is all going to be illusory. Political analyst Graco Perez warns that China’s increasing assertiveness toward self-ruled Taiwan is a source of tension with the United States.

The relationship between China and Honduras signals growing Chinese influence in Latin America. However, this increasing assertiveness towards smaller nations can backfire in the court of public opinion. Reducing hostility between Beijing and Taipei can reduce pressure from China’s “dollar diplomacy” campaign.

In conclusion, this switch by Honduras to establish diplomatic relations with China underlines the tectonic shift in the balance of power happening globally. While it highlights Beijing’s unstoppable rise, it also shows how countries are becoming more pragmatic while forging new relationships in pursuit of economic growth.

Image Source: Wikimedia Commons