For Honduras, Economic Needs Come First!
Honduras leader Castro on Tuesday announced that the government would seek to establish relations with China, implying the end of ties with Taiwan. Honduras was one of the few remaining countries in the world to maintain official diplomatic ties with Taiwan, which China considers a renegade province that must be reunited with the mainland by force if necessary.
China has been using its economic and political clout to persuade other countries to switch their recognition from Taiwan to China in recent years. It has succeeded in doing so with some countries in Latin America and elsewhere, and now it also works for Honduras!
Honduras dissatisfied with its relations with Taiwan?
Taiwan and Honduras have been in diplomatic relations for over 80 years, and it changes now due to its domestic needs and China’s ‘offer’. According to Honduras’ Foreign Minister Eduardo Reina, the decision to establish diplomatic relations with China was driven by economic necessity and because Taiwan declined to increase financial aid.
In an interview with Canal 5 television channel, Reina stated that Honduras had suggested “more significant relations” due to the pressing needs of the Honduran people, but Taiwan declined. Honduras is one of the least developed countries in the region, with nearly 74% of its approximately 10 million citizens living in poverty. Reina explained that Honduras had requested Taiwan to double its yearly aid of $50 million and also explored “realigning” its $600 million debt to the island nation. Still, these proposals were not met with positive responses.
The country will try to defend and reach its vital national interest, which relates to prosperity and survival in the case of what happened in Honduras. Indeed, as a developing country with a significant poverty rate, Honduras may be looking for new opportunities to boost its economy and receive aid. Moreover, the government has shown they are open to spending more on flagship infrastructure projects. This may explain why Honduras requested Taiwan to increase its yearly aid and “realign” its debt and why it is seeking to establish diplomatic relations with China. China has been known to provide significant support and investment to countries in exchange for diplomatic recognition, which could be attractive to Honduras.
The implication of the political swift
Taiwan has expressed concern for Honduras, as it has tried to build communication and dialogue with Honduras. Taiwan also reminded Honduras to pay attention to China’s false promises. It is essential for Honduras to carefully consider the potential consequences of establishing diplomatic ties with China, particularly in light of concerns about China’s use of debt to exert influence over other countries.
Sri Lanka is one example of a country that has faced challenges due to its close ties with China, including taking on significant debt that it has struggled to repay. Therefore, while seeking to establish relations with China may offer economic benefits to Honduras, the government should weigh these benefits against the potential risks and take steps to mitigate these risks.
If Honduras were to switch its diplomatic recognition from Taiwan to China, it would be a significant diplomatic victory for China and a major setback for Taiwan, which has been losing diplomatic allies to China in recent years. However, the decision would also have political and economic implications for Honduras, as Taiwan has been a significant source of aid and investment. It remains to be seen whether President Castro’s comments will result in a formal switch of diplomatic recognition from Taiwan to China, as there may be domestic and international opposition to such a move.
Not only that, but Honduras’ political swift also puts more pressure on the US as China’s economic offer may turn other countries to support the country even more.