Panama established official diplomatic ties with China last Tuesday, thereby renouncing its ties to Taiwan. This decision comes as a major political victory for China as it seeks to further isolate Taiwan and strengthen vital economic partnerships in Latin America.

A joint statement issued by representatives of both countries said that Panama recognizes “only one China” and that the “government of the People’s Republic of China is the only legitimate government representing all China and Taiwan is an inalienable part of the Chinese territory.”

And then there were 20: Taiwan’s isolation solidifies

Panama’s decision leaves Taiwan with just 20 international allies. Many are just small countries or islands in Latin America and the Pacific (its only European ally is Vatican City), yet every loss to China further secludes the island nation.

Both Beijing and Taipei require foreign countries to decide whether to forge diplomatic relationships with either the People’s Republic of China (China) or the Republic of China (Taiwan)–never both.

In recent decades, as China’s global economic influence has grown, many countries have found it more advantageous to build ties with China. The latest country to switch its allegiance in favor of China was São Tomé and Príncipe, which announced the move in December.

Taiwan severed its ties to Panama on Wednesday, one day after Panama’s announcement. Taiwan’s foreign ministry said it felt “anger and regret” over the “very unfriendly” diplomatic turn by Panama, which it deemed “yielded to economic interests by the Beijing authorities.”

Beijing has increased its pressure on Taiwan after Tsai Ing-wen was elected president last year. Her liberal democratic party views have regularly heightened tensions with China. She did not endorse the “One China” policy, after she took office, a common practice between the two countries, which agree to endorse the policy but hold different interpretations of what it means.

Then in January, after Donald Trump’s inauguration, Tsai called him to offer her congratulations. China took offense to the fact that the U.S. took the call and because it saw the potential for the two countries to get closer.

Tsai has tried to foster that possibility. She stopped in the U.S. in January, en route to Central America for diplomatic visits, and made a point to visit politicians such as Senators Ted Cruz (R-TX) and Marco Rubio (R-FL.).

Tsai, who visited Panama just last June, emphasized the years of friendship between the two countries in a speech she gave on Tuesday. She maintained that Taiwan would not engage in “a diplomatic bidding war” with China, despite the fact that China continues to “pressure Taiwan’s international space.”

“We are a sovereign country,” Tsai said. “This sovereignty cannot be challenged nor traded.”

An important play for Panama

China is currently the Panama canal’s second biggest user and it’s clear this new relationship will give China an economic advantage over the historically U.S.-controlled Panama canal.

China was funding a $50 billion alternative to the Panama Canal in Nicaragua. However, financial struggles and environmental critiques have halted construction before it even started. Though that project has largely fallen through, China can now comfortably rely on Panama’s canal to circulate its goods.

The Panama Canal Authority also just announced it will be looking for contractors and customers to modify infrastructure surrounding the canal later this year, further providing China with strong potential business opportunities.

Asia-based political risk analyst Ross Feingold said that “enhanced communication channel between the Panamanian and Chinese governments following diplomatic recognition can only be a positive for Chinese logistics and infrastructure companies that operate in the canal zone.”

However, China may not be the only party to benefit from this alliance. In the last few years, two of Panama’s main economic drivers, the canal and its status as a fiscal sanctuary, have taken a hit.

In late 2013, President Xi Jinping announced the Maritime Silk Road plan, a development strategy aimed at integrating and coordinating trade between Eurasian countries. This plan completely excluded North and South America. In 2015, the Suez canal, perhaps the Panamanian canal’s main competitor, underwent a renovation, which allows it to accommodate larger ships and ease congestion.

China’s renewed interest in Panama through this diplomatic relationship can be seen as an indicator that Panama and its canal will not be cast away in favor of newer, more convenient options.

New Chinese direct investments are also an opportunity for Panama to revive its financial and fiscal image, which had taken a toll after last year’s “Panama Papers” revelations.

At the time, many officials had complained that the shorthand used by international media outlets for the Mossack Fonseca case hurt the country’s reputation.

“It’s not about Panama, it’s about one company. Nobody called it the Texas fraud when Enron [went] bankrupt,” vice-minister of the economy Ivan Zarak said at the time. “It’s unjust. You are holding accountable the whole country for the actions of one company,”

A renewed relationship with China could indeed help the nation re-boot. In a televised speech given last week, Panamanian President Juan Carlos Varela, who actually met with President Donald Trump earlier today, said he was “convinced that this is the correct path for [the] country.”

Celia Heudebourg

Celia Heudebourg is an editorial intern for Law Street Media. She is from Paris, France and is entering her senior year at Macalester College in Minnesota where she studies international relations and political science. When she’s not reading or watching the news, she can be found planning a trip abroad or binge-watching a good Netflix show. Contact Celia at Staff@LawStreetMedia.com.

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China’s central government issued an interpretation of Hong Kong’s mini-constitution on Monday, effectively blocking two pro-independence legislators from joining the semi-autonomous region’s Legislative Council. Yau Wai-ching, 25, and Baggio Leung, 30, were elected to the rule-making body in September, nearly two years after pro-democracy protests gripped the former British colony.

Coalescing around the Chinese government’s liaison office, thousands of Hong Kong citizens preemptively took to the streets to protest the impending decision on Sunday evening. Like the pro-democracy protests of 2014, many wielded yellow umbrellas, as policemen attempted to combat the horde with pepper spray.

Yau and Leung were involved in a pending court case before Beijing stepped in to issue its own interpretation of the Basic Law, Hong Kong’s judicial code that was hammered out before it was granted semi-autonomy from the mainland in 1997. Yau and Leung were in court to determine if they could redo their oaths of office because both altered the wording when being sworn into the council. They said “Chee-na,” a derogatory term used by the Japanese in World War II, instead of “China.”

Through the state-run Xinhua news agency, Beijing’s National People’s Congress espoused its interpretation of Article 104 of the Basic Law. The report said:

An oath taker who intentionally reads out words which do not accord with the wording of the oath prescribed by law, or takes the oath in a manner which is not sincere or not solemn, shall be treated as declining to take the oath. The oath so taken is invalid and the oath taker is disqualified forthwith from assuming the public office specified in the Article.

This is the first time Beijing has issued its interpretation of a pending court case in Hong Kong, unprompted, since 1997. The move was legal, however, according to the charter that was negotiated before British handed Hong Kong over to the mainland, which stated an interpretation of the Basic Law by China’s Parliament supersedes that of Hong Kong’s highest court.

Police in Hong Kong fired pepper spray at protesters after Beijing barred 2 recently elected pro-independence lawmakers from taking office. pic.twitter.com/rSCB9LaZS6

— AJ+ (@ajplus) November 7, 2016

“This incident shows us the Basic Law is a handicapped legal document and the so-called mini-constitution can be amended and controlled by the Chinese Communist Party at will,” said 20-year-old Joshua Wong, one of the leaders of the 2014 protests that ultimately vaulted at least six pro-independence candidates, including Yau and Leung, to the 70-member Legislative Council.

Under the “one country, two systems” code, Hong Kong’s Basic Law guarantees the region’s own judicial freedom from the Communist mainland. And although the Legislative Council’s leader is pro-Beijing and the body itself is still largely comprised of lawmakers cozy to the capital, a younger crop of pro-independence leaders, many of whom lack experience but were spurred to run by the 2014 movement, are taking root.

But as a new wave of protestors hit the streets to protest a move they see as a breach of their autonomy (“Hong Kong independence,” some protestors shouted), Beijing might have set a precedent for years to come. Yau and Leung ran successful campaigns under this slogan: “Hong Kong is not China.” To Beijing, that is more than just a catchphrase. It’s a threat to be taken seriously.

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

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Thirty-one athletes representing 12 countries and six sports may be barred from competing in Rio de Janeiro for this summer’s Olympic Games, due to a new round of testing conducted by the International Olympic Committee (IOC) on doping samples from the 2008 games in Beijing. The IOC has yet to release the names of the athletes, the countries they represent, or the events they compete in.

Tuesday’s announcement from the IOC was the result of using “the very latest scientific analysis methods” on 454 total samples of athletes who competed in Beijing and were poised to compete in Rio. The IOC saves samples for ten years after they’re initially procured for retesting as new methods for identifying banned substances are developed.

In a statement, IOC president Thomas Bach assured all clean athletes that justice will be served to those who cheat:

All these measures are a powerful strike against the cheats we do not allow to win. They show once again that dopers have no place to hide… By stopping so many doped athletes from participating in Rio we are showing once more our determination to protect the integrity of the Olympic competitions, including the Rio anti-doping laboratory, so that the Olympic magic can unfold in Rio de Janeiro.

The IOC also retested 250 samples from the 2012 London games. Results of those retests will be released shorty, the IOC said.

A report released in November by the World Anti-Doping Agency (WADA) that found Russia complicit in a decades long, elaborate state-sponsored doping program, renewed efforts to clean up Olympic competition, long marred by doping scandals. (Read Law Street’s deep dive into that issue).

New details emerged last week, when Grigory Rodchenkov, director of Russia’s anti-doping laboratory, spoke with the New York Times about his country’s ornate doping schemes during the Winter Olympics in Sochi in 2014.

Belated punishment for Olympic athletes years after they won a medal is hardly new to Beijing. Following a retest of 100 samples from the 2004 Athens games, four athletes were stripped of their medals due to anabolic steroid use.

As the specters of the Zika virus and Brazil’s scandal-plagued government loom over the Rio games in August, Tuesday’s results and those soon to be released from the London games are sure to shake things up even further.

Alec Siegel

Alec Siegel is a staff writer at Law Street Media. When he’s not working at Law Street he’s either cooking a mediocre tofu dish or enjoying a run in the woods. His passions include: gooey chocolate chips, black coffee, mountains, the Animal Kingdom in general, and John Lennon. Baklava is his achilles heel. Contact Alec at ASiegel@LawStreetMedia.com.

The post Retest of 2008 Beijing Olympic Samples Find 31 Guilty of Doping appeared first on Law Street.