Honduras will establish diplomatic relations with China, the Central American country’s President Xiomara Castro announced on Tuesday, a decision that entails the de facto severance of diplomatic relations with Taiwan.

“I have instructed Foreign Minister Eduardo Reyna to handle the opening of formal relations with the People’s Republic of China,” Ms Castro said on Twitter, without referring to the future of relations with Taipei.

President Castro, who takes office in early 2022, had mentioned the idea during her election campaign, but last January retracted, saying her “hope” was to maintain the relationship between Tegucigalpa and Taipei . Taiwan’s vice president, William Lai, was also present at her swearing-in ceremony.

On January 1, the Honduran foreign minister met with Chinese Vice Foreign Minister Xie Fang on the sidelines of the inauguration of Luis Inacio Lula da Silva, Brazil’s new president.

And on February 2, Mr. Reyna announced that negotiations were underway with China to build a hydroelectric dam.

Beijing had already financed another dam in Honduras with more than $300 million, inaugurated in 2021 by then-president Juan Orlando Hernandez.

The Honduran foreign ministry did not immediately respond when asked by Reuters for comment.

China is increasing pressure to reduce the international footprint of Taiwan, an island it considers a breakaway province and considers it has no right to enter into interstate relations.

If Honduras does establish relations with China, the number of countries that officially recognize Taiwan will drop to just 13 worldwide.

The Ministry of Foreign Affairs in Taipei limited itself to stating that it is in the “process of understanding” the situation, without going into details.