Until recently, all Central American countries maintained diplomatic relations with Taiwan instead of China. President Óscar Arias of Costa Rica, however, established diplomatic relations with China in 2007, severing formal diplomatic ties with Taiwan. After breaking off relations with the Republic of China in 2017, Panama established diplomatic relations with the People's Republic of China. In August 2018, El Salvador also severed ties with Taiwan to formally start recognizing the People's Republic of China as sole China, a move many considered lacked transparency due to its abruptness and reports of the Chinese government's desires to invest in the department of La Union while also promising to fund the ruling party's reelection campaign. The President of El Salvador, Nayib Bukele, broke diplomatic relations with Taiwan and established ties with China. On 9 December 2021, Nicaragua resumed relations with the PRC.
Until recently, all Central American countries maintained diplomatic relations with Taiwan instead of China. President Óscar Arias of Costa Rica, however, established diplomatic relations with China in 2007, severing formal diplomatic ties with Taiwan. After breaking off relations with the Republic of China in 2017, Panama established diplomatic relations with the People's Republic of China. In August 2018, El Salvador also severed ties with Taiwan to formally start recognizing the People's Republic of China as sole China, a move many considered lacked transparency due to its abruptness and reports of the Chinese government's desires to invest in the department of La Union while also promising to fund the ruling party's reelection campaign. The President of El Salvador, Nayib Bukele, broke diplomatic relations with Taiwan and established ties with China On 9 December 2021, Nicaragua resumed relations with the PRC.