China has commended Nicaragua on its "right" decision to re-establish diplomatic ties and to break off relations with Taiwan.
The statement from the foreign ministry comes as government representatives from China and Nicaragua signed a communique in the northern city of Tianjin on Friday.
Xinhua News Agency reported that according to the communique, the two governments agree to develop friendly relations on the basis of the principles of mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality, mutual benefit and peaceful coexistence.
"The government of the Republic of Nicaragua recognizes that there is but one China in the world, the government of the People's Republic of China is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China's territory", it added.
Reacting to the news, Taiwan leader Tsai Ing-wen said the island was unbowed in its determination to uphold democracy.
"The more successful Taiwan's democracy is, the stronger the international support, and the greater the pressure from the authoritarian camp," she told reporters.
No matter the pressure, it will not change Taiwan's determination to uphold democracy and freedom and "march towards the world", she added.
Also reacting to the news, the US State Department called on "all countries that value democratic institutions" to "expand engagement with Taiwan."
The statement said the move by President Daniel Ortega "cannot reflect the will of the Nicaraguan people" due to the the Central American country's recent presidential election being a "sham."
"This deprives Nicaragua's people of a steadfast partner in its democratic and economic growth," the US statement said.
Nicaragua's break with Taiwan shrinks the island's dwindling pool of international allies and is a blow to the United States.
It follows months of worsening ties between Ortega and Washington. (Agencies)
Last updated: 2021-10-12 HKT 11:57