Panama broke off diplomatic relations with Taiwan and switched to Beijing, accepting its one China policy, the countries announced Monday.
"In light of the interests and wishes of both peoples, the Republic of Panama and People's Republic of China have decided to grant each other, from the date of this document's signing, mutual recognition, establishment of diplomatic ties at the ambassadorial level," the note said.
Panama now "recognizes that there is only one China in the world" and that Taiwan is part of Chinese territory.
The new relationship with Beijing was starting Monday, and the previous one with Taiwan ending, the note added.
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