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When Taiwan is trying its best to get recognized as a sovereign nation by more countries despite strong opposition by China, it suffered a setback last month. Nicaragua broke its diplomatic relations with Taiwan. That was enough for China to show what it means to pander to its interests.
Moving swiftly, China shipped 200,000 Covid-19 vaccines to Nicaragua in four days of the Central American country's breaking relations with Taiwan. The government received a second shipment within days of the first. (http://www.xinhuanet.com/english/20211225/7063837c9f5346db9cfd0ebb12fc5e96/c.html) China will send 1 million doses in total to Nicaragua.
China has re-opened its Embassy in Managua after 31 years while it has seized control of almost all Taiwan's diplomatic buildings. China broke diplomatic relations in 1990 after Nicaragua recognized Taiwan.
Taiwan has expressed "regret" at Nicaragua's decision calling it "gravely illegal" for breaking relations and giving only two weeks for Taiwanese diplomats to leave. It is unlikely to make a difference to Nicaragua, as China is in its corner. (https://www.theguardian.com/world/2022/jan/01/china-opens-embassy-in-nicaragua-for-first-time-since-1990-after-taiwan-ties-cut)
Taiwan has accused China of "luring" other Taiwanese diplomatic allies, such as Guatemala, Honduras and Paraguay, with offers of vaccines for breaking off relations with the island. (https://www.taiwannews.com.tw/en/news/4375334)
China has been trying hard to lure away countries that have established diplomatic relations with the island that China claims as its own.
13 countries and the Vatican currently recognize Taiwan. The numbers are down from 21 countries in 2017. Some of the countries that have stepped back from Taiwan include El Salvador, Dominican Republic, Panama, the Solomon Islands. (https://www.nytimes.com/2021/12/10/world/asia/taiwan-nicaragua-china.html)
China's state-controlled media is reporting that trade between the two countries will see exponential growth in the coming years, with Chinese investors showing interest in Nicaragua for investments in agriculture, industry and other sectors. According to official China statistics, in 2020, trade between China and Nicaragua stood at $500 million, with China's exports dominating the share. China is likely to promise more Nicaraguan goods, including sugar, leather and wood. Nicaragua has also been invited to the International Import Expo held in Shanghai. (https://www.globaltimes.cn/page/202112/1241390.shtml)
Read more:
Vaccine diplomacy of China:
https://www.bbc.com/news/world-asia-59633388