Panama Switches Diplomatic Relations From Taiwan To China By Carie P. email@example.com | Jun 14, 2017 09:24 AM EDT Latest reports confirmed that Panama just switched its diplomatic relations with Taiwan to China and this was considered as the biggest move of the said country after handing a huge victory to Beijing. With this, Panama just isolated itself from Taiwan which included all ties and relations. This news was recently announced by no other than the President of Panama, Juan Carlos Varela which marked the formal breaking off of Panama with Taiwan. According to BBC, the said announcement was televised and the leader of the said country even added that the move was just right as it became symbolic for Panama's correct path. It was also revealed that Panama and China were starting to establish an ambassadorial-level of relationship despite the former's cutting off ties with Taiwan. If this will continue, then there is a possibility that Panama and China will have a great diplomatic relationship. Watch video The very reason of Panama for separating from Taiwan was because of its belief that China is the only legal government which represents China. Apart from this, Taiwan is only considered as an inalienable part of China; hence, the country made such move. With this, Wall Street Journal reported that Panama just ended its diplomatic relations with Taiwan and the country decided not to execute any official relations with Taiwan anymore. Panama is looking forward to building a strong relationship and ties with China. It was also reported that with this issue, China has been seeking ways to punish Taiwan. The reason for this was because China was angered by the victory of President Tsai Ing-wen in an election last year. The said conflict started also when Tsai declined to endorse China's proposition that Taiwan and mainland China constitute a single Chinese country. Because of those, China was determined to punish China in a way that they find ways to pressure Taiwan and later isolate it. However, despite the reported cutting of diplomatic relations, there was an assurance that trade and investment will continue between Panama and Taiwan.