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FILE PHOTO - Taiwan's President Tsai Ing-wen listens with her counterpart Panama's Juan Carlos Varela to the national anthem during a welcome ceremony before a meeting at the Presidential Palace in Panama City, Panama June 27, 2016. REUTERS/Carlos Jasso/File Photo

(reuters_tickers)

PANAMA CITY (Reuters) - Panama's government said on Monday it had broken diplomatic ties with Taiwan as it established formal relations with China.

In a statement, the Panamanian government said it recognised there was "only one China in the world" and that Taiwan formed an inalienable part of Chinese territory.

"The Panamanian government is today breaking its 'diplomatic ties' with Taiwan, and pledges to end all relations or official contact with Taiwan," the statement read.

(Reporting by Elida Moreno)

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Reuters