Panama Cuts Taiwan,adds new friend China

Beijing, June 13: A shock has occurred to a country. Panama today has decided to break all its diplomatic ties with Taiwan. This Decision comes as a big blow to the country. Panama also decided to establish relations with China because cash-rich Beijing had offered its help the country to wean away a handful of allies of Taipei.

China and Panama today have signed a joint communique formally for establishing diplomatic relations. Chinese Foreign Minister Wang Yi on Tuesday held a meeting with Panama's vice president Isabel Saint Malo de Alvarado.

Taiwan has expressed "anger and regret" over the unfriendly diplomatic turn by Panama that "yielded to economic interests by the Beijing authorities". The country has accused the former partner of "bullying" and ignoring many decades of friendship between the two countries.

The shift in diplomatic relations by Panama leaves Taiwan with a very handful of allies around the world.Sources say the diplomatic relations between countries have worsened and China has taken the opportunity of the situation and has entered the game and it played its moves to make sure that the relations between two countries break .