Margaret Myers, director of the Asia & Latin America Program at the Inter-American Dialogue: “Honduran President Xiomara Castro has noted that the decision to cut ties to Taiwan was economically motivated, and that would indeed appear to be the case. Chinese trade with the Central American nation has grown markedly over the past few years, and Honduras is looking for support for yet another hydroelectric dam project. The Industrial and Commercial Bank of China financed the Patuca III dam a number of years ago. Honduras is now hoping that China will also back the Patuca II project. In general, things aren’t looking great for Taiwan in the Latin American and Caribbean (LAC) region. In Paraguay, relations with Taiwan have been the focus of heated debate in the lead-up to the country’s presidential election. Indeed, China has been increasingly successful in isolating Taiwan since Taiwan’s Democratic Progressive Party, which is…”
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