Honduras shifts allegiance to China due to debts and investment.

Honduras has established formal ties with China instead of Taiwan, citing the need for new investment and less debt. The country owes Taiwan $600 million and had asked for an increase in annual aid to $100 million, but received no response. The move puts pressure on Taiwan President Tsai Ing-wen ahead of an April visit to the U.S. and Central America. China has made notable investments in Latin American countries that have deserted Taiwan for Beijing since 2016. Honduras risks harming relations with the U.S., its top trade partner, but aims to have a "top-level" relationship with China.