China and the South Pacific nation of Nauru on Wednesday formally re-established diplomatic relations, Xinhua news agency reported.

Officials from the two countries held a signing ceremony in Beijing, Xinhua said.

“Today we have opened a new chapter…We have signed the joint communique on the resumption of diplomatic ties between the People’s Republic of China and the Republic of Nauru,” Foreign Minister Wang Yi told a press conference after the ceremony.

“In it, Nauru recognises there is only one China in this world, and the Chinese government of the People’s Republic of China is the only legitimate government on behalf of China and Taiwan region is an inseparable part of China,” he added.

The Pacific island nation had recently severed ties with Taiwan. It had recognised China before – between 2002 and 2005.

“We have maintained a longstanding friendship. We both are developing nations and we are confronted with the tasks of improving people’s livelihood and realising modernisation,” Wang said.

“We safeguard the interests of developing nations and safeguard our sovereignty and polarisation of this world and we both pursue globalisation that features universality and inclusiveness. So those common grounds bring us together.”

Nauru – with a population 12,500 – is one of the world's smallest countries and lies about 4,000 kilometres northeast of Sydney.

Its government said it was seeking full resumption of diplomatic relations with China "in the best interests" of the country and its people. (Additional reporting by AFP/Reuters)