Honduras established diplomatic ties with China on Sunday after breaking ties with Taiwan, which is increasingly isolated and now recognized by only 13 sovereign states, including Vatican City.

The Chinese and Honduran foreign ministers signed a joint statement in Beijing, a decision the Chinese foreign ministry called «the right choice.»

The new ties come amid rising tensions between Beijing and the United States, including over China’s growing assertiveness toward Taiwan’s self-rule, and signal growing Chinese influence in Latin America. The new China-Honduras relationship was announced after the governments of Honduras and Taiwan separately announced that they were breaking ties.

The Honduran Foreign Ministry said in a statement on Twitter that its government recognizes «one China in the world» and that Beijing «is the only legitimate government that represents all of China.»

He added that «Taiwan is an inalienable part of Chinese territory and, as of today, the Honduran government has informed Taiwan about the severance of diplomatic relations, pledging not to have any official relationship or contact with Taiwan.»

Taiwan’s Foreign Minister Joseph Wu told a press conference on Sunday that Taiwan had terminated its relations with Honduras to «safeguard its sovereignty and dignity.»

Wu said Honduran President Xiomara Castro and her team always had a «fantasy» about China and had raised the issue of changing ties ahead of the Honduran presidential election in 2021. Relations between Taiwan and Honduras were once stable, He said, but China had Honduras does not stop seducing.

Honduras had asked Taiwan for billions of dollars in aid and compared its proposals with those of China, Wu said. About two weeks ago, the Honduran government requested $2.45 billion from Taiwan to build a hospital and a dam, and pay off debts, he added.

“The Castro government dismissed our nation’s longstanding relations and assistance and held talks to form diplomatic ties with China. Our government feels hurt and sorry,” he said.

Taiwan presidential office spokeswoman Olivia Lin said in a statement that relations between the two sides have lasted for more than 80 years.

«China has suppressed Taiwan’s international space for a long time and unilaterally endangers the peace and stability of the region,» it said in the statement.

Analysts have warned about the implications of the newly formed ties between China and Honduras. Political analyst Graco Pérez in Honduras said the Beijing narrative would highlight benefits, including investment and job creation, «but all of that will be illusory.»

Pérez pointed out that some other countries have established this type of relationship, but «it did not turn out to be what had been offered.»

For decades, China has funneled billions of dollars into investment and infrastructure projects in Latin America. That investment has translated into growing power for China and a growing number of allies.

In Honduras, it has come in the form of the construction of a hydroelectric dam project in central Honduras built by the Chinese company SINOHYDRO with around $300 million in financing from the Chinese government.

Honduras is the ninth diplomatic ally Taipei has lost to Beijing since pro-independence President Tsai Ing-wen first took office in May 2016.

China and Taiwan have been locked in a battle for diplomatic recognition since the parties split amid civil war in 1949, with Beijing spending billions to gain recognition for its «one China» policy.

China claims that Taiwan is part of its territory, to be brought under its control by force if necessary, and rejects most contacts with countries that maintain formal ties to the island democracy. Threatens retaliation against countries simply for increasing contacts.

Taiwan still has ties to Belize, Paraguay and Guatemala in Latin America and the Vatican City. Most of its remaining partners are island nations in the Caribbean and South Pacific, along with Eswatini in southern Africa.

Tsai will begin a 10-day trip on Wednesday with visits to Guatemala and Belize. His delegation will also stop in New York and Los Angeles, Lin said last week. Taiwan’s Vice Foreign Minister Alexander Yui said earlier that the purpose of Tsai’s trip is to highlight the island’s friendship with the two Latin American countries.

Wu said he had no evidence that the timing of the announcement was related to Tsai’s trip, but noted that «China appears to be doing this intentionally.»

Despite China’s isolation campaign, Taiwan maintains strong informal ties with more than 100 countries, mainly the United States. The United States does not have diplomatic relations with Taiwan, but has maintained that Taipei is an important partner in the Indo-Pacific.