Honduras establishes ties with China after Taiwan break

Honduras on Sunday established diplomatic relations with China and ended its recognition of Taiwan, sparking outrage among Taiwanese leaders who said the Central American nation had demanded “billions of dollars” to continue backing the island democracy on the international stage.

The development expands China’s sphere of influence in the Western Hemisphere and shrinks international support for Taiwan. It also comes amid worsening U.S.-China relations and a widening battle for global influence between Washington and Beijing that some analysts have described as Cold War 2.0.