CSIS Podcasts Taiwan in the Western Hemisphere: A Status Update
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Sep 4, 2025 In a thought-provoking discussion, Henry Large, a Rhodes Scholar and doctoral candidate at the University of Oxford, unpacks Taiwan's precarious diplomatic relationships in Latin America. He highlights how Panama's 2017 switch to recognizing China has prompted a worrying trend among Taiwan's remaining allies. The conversation dives into the strategic importance of these diplomatic ties and how the U.S. can strengthen partnerships with Taiwan, despite the complexities of global politics. It’s a captivating exploration of a region caught in the crossfire of superpower competition.
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Why Formal Allies Still Matter
- Taiwan's 12 formal diplomatic partners provide symbolic legitimacy and practical lobbying power in international fora.
- Maintaining embassies helps Taiwan project sovereignty and seek representation in bodies like WHO and the UN.
Panama's Long Road To Beijing
- Panama made multiple attempts over decades to switch recognition before Varela completed it in 2017.
- Varela's personal engagement and secret negotiations with Beijing were decisive in the eventual switch.
Panama Between Two Powers
- Panama now hedges between China and the U.S., seeking Chinese investment while avoiding actions that damage U.S. ties.
- Successive governments paused or limited Chinese projects to preserve relations with Washington and protect canal interests.