Panama Drinks the Chinese Kool-Aid:

Panama has cut long-standing diplomatic ties with Taiwan and established relations with China instead. David Lee, Taiwan's foreign minister, said Panama “yielded to Beijing because of economic benefits, did a diplomatic turn in a very unfriendly way and deceived the government of the Republic of China (Taiwan) until the last minute." 

Ouch. Lee added that Taiwan was also cutting diplomatic ties with Panama to safeguard Taiwan’s “sovereignty and dignity." It was exactly one year ago that Taiwanese President Tsai Ing-wen visited Panama on her first overseas trip as president. Now just 20 countries around the world maintain full diplomatic ties with Taipei instead of Beijing, and Panama is the latest to have switched sides.

China has intensified its economic investment in Panama, which is of course, home to the economically vital Panama Canal. Given China's rapid growth as an economic and political superpower, it has been increasingly easy for Beijing to throw around its diplomatic weight. 

Panama did not say why it changed its diplomatic allegiance, but it has been increasing its economic cooperation with China in recent years. The Panama Canal is a vital shipping route, and access to the eastern coasts of both South America and the US is essential for China’s global trade ambitions, including its One Belt One Road initiative.

THE DAILY PNUT