After Honduras switched diplomatic relations to China, the Chinese Communist Party (CCP) failed to fulfil its promise of large-scale shrimp purchases, severely damaging the local shrimp farming industry. (Video screenshot)
[People News] As geopolitical competition intensifies, the Pacific region has become a focal point of the CCP’s diplomatic offensive. Using economic incentives as bait, Beijing has continuously sought to poach Taiwan’s allies, pressuring Pacific island nations to abandon Taiwan and establish diplomatic relations with China, in an attempt to completely dismantle Taiwan’s diplomatic network in the region.
On April 13, Palau President Surangel Whipps Jr. told AFP that the Chinese authorities had “very directly” demanded that Palau sever diplomatic ties with Taiwan, but Palau refused to let outsiders interfere in its foreign policy.
Whipps said: “China was very direct in saying we must condemn Taiwan.” However, “we have already said, ‘We have no enemies. We don’t need anyone to tell us who our friends are.’”
He added, “They (China) reached out, and they have their views. I understand their position, and we have made ours very clear.” He emphasised: “Those of us who support Taiwan have the same rights as those who support China. We should be treated equally.”
Beijing ‘Weaponises’ Tourism
Recently, the CCP has used tourism as an economic lever to repeatedly pressure Taiwan’s diplomatic allies and undermine Taiwan’s international standing.
Whipps revealed that Beijing had “very directly” urged Palau to abandon Taiwan, even offering to “fill every hotel room in Palau” as an incentive. However, Palau stood firm despite the pressure, maintaining diplomatic relations with Taiwan. In retaliation, China imposed a tourism ban, severely impacting Palau’s tourism-dependent economy. Palau Pacific Airways, unable to sustain losses, decided to suspend flights to mainland China.
Between late 2017 and 2018, Beijing imposed travel restrictions on Palau, causing a sharp drop in Chinese tourists and severely impacting the local economy, which relies heavily on tourism. Hotels were left vacant, and airlines suspended routes to China. The Palauan government subsequently worked to diversify its tourist base, targeting visitors from Europe, the United States, and Taiwan to reduce risk.
In addition, the Marshall Islands and Tuvalu have also resisted CCP interference and maintained strong diplomatic relations with Taiwan.
CCP ‘Chequebook Diplomacy’ as Bait
On January 15, 2024—just two days after Taiwan’s presidential election—Nauru abruptly announced it was severing ties with Taiwan and recognising Beijing. According to think tank analyses and related reports, Beijing promised Nauru as much as $82 million in development aid. Some diplomatic experts noted that the timing suggests Beijing intended to exert pressure on Taiwan’s new government through diplomatic means. This move reduced Taiwan’s number of allies in the Pacific to three.
Political observers point out that the CCP’s tactics in the Pacific have escalated from simple economic aid to “transnational repression and law enforcement intervention.” For example, China has promoted police patrol agreements in Hungary and some island nations, raising concerns in the United States and Australia.
Despite Beijing taking advantage of difficulties faced by island nations due to the global energy crisis and inflation, the steadfastness of Palau, the Marshall Islands, and Tuvalu demonstrates that partnerships based on shared democratic values still have considerable vitality in the Pacific.
Heavy Losses from Establishing Ties with the CCP
The CCP, having risen as a “rogue regime,” is seen as untrustworthy. Many countries that abandoned Taiwan to establish diplomatic ties with China have found that promised economic assistance failed to materialise, leading to setbacks in agricultural exports and even domestic political instability. Honduras (shrimp crisis), Nicaragua, and Malawi are often cited as typical examples. In these countries, unmet promises have led to economic stagnation or reduced aid, prompting some voices to call for restoring ties with Taiwan.
Honduras, which switched diplomatic recognition from Taiwan to China in 2023, has seen the CCP fail to fulfil its promise to purchase large quantities of shrimp, severely damaging the local shrimp farming industry. Once a major source of foreign exchange, the industry is now struggling. Dozens of farmers have sought government assistance, claiming that China has ruined their business and calling for a break in ties with China and the restoration of relations with Taiwan.
Nicaragua, which cut ties with Taiwan in 2021, has aligned closely with China but has not received the expected economic benefits. Its socio-economic conditions have not improved and are widely seen as falling into a “debt trap.”
Malawi, which severed ties with Taiwan in 2008, reportedly saw a former president later admit regret, noting that the loss of Taiwan’s substantial medical and agricultural assistance led to worsening HIV/AIDS control and economic deterioration.
Taiwan’s Foreign Minister Joseph Wu has also noted that countries such as Panama and the Dominican Republic found that many of China’s promised resources failed to materialise after cutting ties with Taiwan. Some individuals in these countries have expressed regret over losing Taiwan’s practical technical cooperation.
The experiences of these countries reflect a broader pattern: under the lure of the CCP’s “chequebook diplomacy,” those who took the risk of switching recognition ultimately failed to achieve the expected economic benefits, leading to a sense of regret after suffering losses. △
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