Taiwan

November 2005 | Risk Summary

The African country of Senegal resumed diplomatic ties with China in late-October, providing a boost to China as it attempts to isolate Taiwan diplomatically. China's strong economic growth is one of the main reasons why Senegal decided to switch recognition to China, as demand from China for raw materials provides a boost to resource-rich countries in Africa. Following Senegal's switch, Taiwan cut all ties with Senegal while also suspending all aid ties to the country. Without Senegal, only 25 countries, mainly the small states in the Caribbean and Pacific, recognize Taiwan.

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