BUYING FRIENDS: Panama’s Decision to Cut Ties With Taiwan.

China’s Foreign Ministry, in a statement, said the country highly appreciate(s) and warmly welcome(s)” the move. The reaction from Taipei was angry. The Foreign Ministry said Panama “caved in to Beijing … for economic gain,” calling the move “highly disrespectful.”

Panama is the latest country to switch from its recognition of Taiwan as the official representative of China. The move follows a similar one last December by Sao Tome and Principe, the African island nation, which aligned itself with Beijing.

And:

Panama’s reversal may be linked to China’s massive investment in the country; Beijing has spent billions of dollars in the area around the Panama Canal.

Flashback: John Kerry declares the Monroe Doctrine dead.