The Panama Canal is vital for global trade
Panama has cut diplomatic ties with Taiwan and established relations with China instead.
The government said it recognised there was “only one China” and that it considers Taiwan part of it.
China regards Taiwan as a breakaway province that it insists should be reunited with the mainland.
Panama is the latest among the handful of countries that had maintained ties with Taipei instead of Beijing to switch sides.
In recent years China has intensified its economic investment into the central American country – home of the economically vital Panama Canal.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.