Panama and Nicaragua have both recently changed their recognition of statehood from Taiwan, formally known as the Republic of China, to China, formally known as the People’s Republic of China. Panama and Nicaragua are only a part of a larger global community that is turning away from Taiwan and towards China, as China grows as an economic, political, and military superpower. However, with a majority of Taiwan’s remaining allies calling Latin America and the Caribbean home, these switches in recognition act as an omen for Taiwanese sovereignty. Overall, Panama and Nicaragua changed their recognition due to China’s political and economic dominance, as well as due to a general shifting sentiment in Central America away from historical United States superiority in the region.
Rogers, Roxanne I., "The Switch: Why Do Panama and Nicaragua Now Recognize China over Taiwan?" (2022). Modern Languages, Philosophy and Classics Theses. 4.