Taiwan Loses Costa Rica's Backing to China

China nudged closer to victory in its 58-year diplomatic arm wrestle with Taiwan today, as it emerged that Costa Rica has switched allegiance from Taipei to Beijing.

The shift - which was prompted by Costa Rica's desire to tap into the world's fastest growing economy - underscores China's growing muscle in global affairs.

Taiwan and China have been tussling for recognition since 1949, when Mao Zedong's communist forces drove the Kuomintang government across the Strait.

By 1955, only 23 states had established diplomatic relations with Beijing. But with the latest switch, 170 nations now recognize the communist government. Democratic, self-ruled Taiwan, meanwhile, has seen its support dwindle to just 24 mostly small, poor nations.

Both sides offer generous incentives for countries to swap allegiances, prompting some to switch more than once. Earlier this year, St Lucia - population 168,000 - moved back into the Taiwan camp, prompting Beijing to immediately withdraw its embassy and cut funding for a cultural center and psychiatric center.

The long-term trend, however, shows the gravitational pull of the mainland has grown stronger as its economy and trade flows increase at double digit pace.

With a population of 4.1 million, Costa Rica is a significant gain for Beijing. The country's president, Oscar Arias, said the decision was driven by economic considerations. "It is an act of elemental realism," he told a news conference in San Jose.

Taiwan's foreign minister, James Huang, offered to resign over the loss of another ally. "We tried our very best to try and maintain ties with Costa Rica, but eventually we failed," he told reporters. "This is not something that a country which stands for peace and democracy should do, cut ties with its partner of 60 years."

China denied that it had offered financial inducements, though trade between China and Costa Rica has increased more than tenfold since 2001.

Jiang Yu, a spokeswoman at the Chinese foreign ministry, urged other nations in South and Central America, including Panama and Nicaragua, to recognize Beijing. She said they should "follow the tide of history and make the correct choice".