Costa Rica: Controversy over ties to China

China’s purchase of $300 million in Costa Rican bonds has created a controversy according to news agency DPA. Opposition politicos have called for the country’s ambassador to China to quit over his supposed role in a transaction between a Costa Rican bank and the government in China.

Only 27 countries worldwide diplomatically recognize Taiwan instead of China with about half of them from Latin America and the Caribbean (LAC). Yet that is slowly changing as trade between China and LAC has quickly increased. Costa Rica resumed ties with China in June 2007 while it was reported on Monday that Paraguay was considering ending its backing of Taiwan.

Taiwan’s waning influence in the Americas may force them and China to declare a ceasefire in their war via “checkbook diplomacy”:

(Taiwanese President Ma Ying-jeou) has promised to stop the "checkbook diplomacy" that previous leaders have practiced for decades. Indeed, Taiwan's long-standing practice of wooing small, often poor, international allies with economic aid has occasionally proven embarrassing…Even if, as analysts expect, Taiwan doesn't offer Paraguay the full $71 million, by going, Ma risks being seen as continuing the practice of bribing impoverished nations in Latin America and Africa for their support.

According to Lin (Chong-pin, President of the Foundation on International and Cross-Strait Studies), Beijing also would like to see an end to the era of jockeying with Taiwan for allies. "Their attitude is: 'We have 172 countries recognizing us. Taiwan has 23. If we gain one or two more, it doesn't make too much difference to us, but it would cause a huge negative impact on the ruling administration in Taiwan.'"

Image- North West College London (Flag of Taiwan)
Sources- The Latin Americanist, NPR, Bloomberg, Monsters & Critics, Taiwan Government Website, Time