ABSTRACT

With the shift of diplomatic recognition from Taiwan to the People’s Republic of China by Panama and El Salvador, the penetration of China into the once so-called backyard of the United States has become pervasive. With the support of the United States, Taiwan has shown its resilience and fought back. Two recent events have strengthened Taiwan’s position in Central America. First, the newly elected president of El Salvador, Nayib Bukele, announced that the new government would review the whole process of the diplomatic recognition of China. It suggested that El Salvador might restore its diplomatic relationship with Taiwan. Second, the Nicaraguan government publicly accepted Taiwan’s US $100 million foreign assistance, which means the consolidation of the Taiwan-Nicaragua relationship. This chapter discusses Taiwan’s diplomatic strategy in Latin America and especially in Central America, and it analyses how the Taipei government reacts to changes in the continent. This research also frames the role of Taiwan in Latin America in the light of the competition between the United States and China in the region.