China established diplomatic ties with Honduras on Sunday as the Central American country severed links with Taiwan, with Beijing hailing the move as an ‘important decision’ that recognises the one-China principle.

Foreign Minister Qin Gang and his Honduran counterpart Eduardo Reina signed a joint communique following talks in Beijing to formally set up diplomatic links between the two sides.

Xinhua News Agency reported that the communique said both governments have agreed to develop friendly relations on the basis of mutual respect for sovereignty and territorial integrity.

The document also said Honduras “shall sever ‘diplomatic relations’ with Taiwan as of this day and undertakes that it shall no longer develop any official relations or official exchanges with Taiwan.”

“The Government of the People's Republic of China appreciates this position of the Government of the Republic of Honduras”, it added.

Qin said the establishment of diplomatic relations would benefit both sides, while pledging support for the country’s economic and social development.

He said China is open to expanding imports of Honduran goods, and would encourage Chinese companies to invest in the country, take part in large-scale infrastructure works and prioritise projects that would help improve people’s livelihood in the Central American nation.

"Honduras has made an important decision to recognise the one-China principle and join the mainstream of the world, which is in full accordance with the fundamental and long-term interests of Honduras and its people, and is also a choice to stand on the right side of history and the side of the vast majority of countries," Qin said.

For his part, Reina hailed the setting up of diplomatic links as a historic move that opens a new era of bilateral relations and would greatly benefit both sides.

He also said Honduras is willing to strengthen cooperation with China on finance, trade, infrastructure, science and technology, culture and tourism, and maintain closer communication and coordination under multilateral frameworks. (Agencies)