“The People’s Republic of China is the only legitimate government that represents all of China and Taiwan is an inalienable part of the Chinese territory,” Foreign Minister Denis Moncada Colindres said in a statement.

In response, Taiwan’s foreign ministry said it “deeply regrets” the Nicaraguan decision to “disregard the long-standing and close friendship” between the two nations, and that their diplomatic relations will be ended “with immediate effect”.

Taiwan would also halt all bilateral cooperation projects and aid programs, and recall staff of its embassy and technical mission in Nicaragua.

“As a responsible member of the international community, Taiwan has the right to conduct exchanges and develop diplomatic relations with other nations,” the ministry said in a statement.

It stated that Taiwan will continue to promote “steadfast diplomacy” to expand its international participation, and that it “will spare no effort” to ensure its rightful status in the international community.

Nicaragua’s break with Taiwan is a blow to the United States. It follows months of worsening ties between Nicaraguan President Daniel Ortega and Washington and came on the day the U.S. State Department said it had slapped sanctions on Nestor Moncada Lau, a national security adviser to Ortega, alleging he operates an import and customs fraud scheme to enrich members of Ortega’s government.

Nicaragua’s move leaves Taiwan with just 14 formal diplomatic allies, most of them in Latin America and the Caribbean, plus a handful of small states including the Vatican. Before Nicaragua, Taiwan lost two allies in quick succession in September of 2019, when the Solomon Islands and Kiribati went over to Beijing.