A Diplomatic Loss

Taiwan has lost Nicaragua as a diplomatic ally after a major shift in the deep state of the Central American country. The Nicaragua government declared that it recognises that there is one China i.e they officially accepted the One China policy and mentioned Taiwan is inalienable part of Chinese territory.

The Nicaragua government’s move has now left Taiwan with only 14 countries that recognises it. The move is contradictory to the statement given by Nicaragua’s President Daniel Ortega (serving since 2007 – current) in 2017 “He and Taiwanese President Tsai ing-wen had pledged to continue the battle to give Taiwan recognition as Sovereign country and a seat in the UN”. He then had also asserted to gain global support for Taiwan’s sovereignty. The reason for this major shift can be the long standing Transoceanic Canal Project in Nicaragua by Chinese business tycoon Wang Jing.

In 2013, HKND ( Wang Jing owned company) was given rights to built and operate a $50bn Transoceanic canal by Nicaraguan government but in fact even after almost half a decade the work didn’t begun as Wang Jing wasn’t able to fund the project and the HKND company’s claims on funding that would come from different countries and investment sectors still remained vague. The deadline of the project in which it was to be completed had already expired in 2019,while at that time the Government and HKND both remained silent and later President announced that the ambitious and most expensive Canal project still remains alive. The promises made to Nicaraguans that the project would bring huge transformational change and economic development throughout the country are being questioned now and the President is being criticized by the opposition for propagating and generating false hopes of development. Thus,the fortune of Ortega lies on the Canal project. Until now Chinese government kept away itself from the Canal project because of Ortega’s stand on Taiwan’s sovereignty and seat at UN. But the President desperately needs to revive the project to gain citizens’ backing again, while Chinese government has the money that Nicaragua needs and according to global trends China through it’s “Belt and road initiative” has motivation to deliver such a project. For instance: Through it’s Wolf warrior diplomacy and Debt trap policy china affirmed to invest in infrastructure projects Nigeria and later that day itself Nigerian government changed its diplomatic stance and recognised Taiwan an inalienable part of China’s territory. Hence breaking off ties with Taiwan and resuming diplomatic relations with People’s Republic of China (PRC) can bring investments and the fortune of the canal project shall change while also bring economic development.

The change in course has led to major disappointment to Taiwan, “President Danial Ortega’s decision has disregarded the Friendship between the peoples of Taiwan and Nicaragua” Taiwan said. This also shows Chinese hegemony has stepped up pressure to win Taiwan’s remaining allies.