Honduras says it has needs in energy, social policies and servicing its debt, which is "drowning the country."
Economic necessity and Taiwan's refusal to increase financial aid were behind Honduras' decision to establish diplomatic ties with China, Foreign Minister Eduardo Reina has said.
Honduras President Xiomara Castro announced on Tuesday that she had instructed Reina to "undertake the official opening of relations" with China, thus severing the Central American country's long-standing diplomatic relationship with Taiwan.
Speaking to Canal 5 television channel on Wednesday, Reina said Honduras had proposed "more important relations given the great needs of the Honduran people" but that Taiwan had refused.
Honduras is one of the poorest countries in the region with almost 74 percent of its near 10 million population living in poverty.
Reina said Honduras had asked Taiwan to double its $50 million a year of aid and also explored "realigning" its $600 million debt to the island nation, but did not receive positive responses.
The two countries had maintained diplomatic ties for more than 80 years.
'Drowning the country'
The switch — which Castro pledged to make before she was elected in 2021 — comes weeks after her government announced it was negotiating with China to build a hydroelectric dam.
Reina said Honduras has needs in energy, social policies and servicing its debt, which is "drowning the country."
He said Honduras paid $2.2 billion last year and must pay another $2.3 billion this year for its external and internal debt, which amounts to $20 billion.
Reina added that "171 countries in the world have relations with continental China" and the economic reality was that Honduras "had to take that decision."
"The idea is to look for mechanisms for greater investment [and] commerce," he added.
It continues a recent trend in the region with Nicaragua, El Salvador, Panama, the Dominican Republic and Costa Rica all switching diplomatic recognition to Beijing.
READ MORE: Honduras to seek official relations with China: President Castro
US monitoring situation
The US State Department warned Honduras that China makes many promises that are unfulfilled.
"The Honduran Government should be aware that the PRC [People's Republic of China] makes many promises that are unfulfilled," a State Department spokesperson said.
"We will continue to monitor next steps closely."
Under Beijing's "One China" principle, no country may maintain official diplomatic relations with both China and Taiwan. China calls Taiwan its breakaway province.
With Honduras snapping ties, only 13 countries now officially recognise Taiwan.
Taiwan's Foreign Ministry said on Thursday that since Honduras President Castro took office last year it had told the country many times that Taiwan was willing to help in its development within Taiwan's abilities.
READ MORE: Is the US losing its influence to China across Latin America?
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