Panama's decision on Monday to establish formal diplomatic relations with Beijing and switch its recognition from Taiwan is a welcome move that accords with the historical trend and best serves the national interests of both China and the Central American nation.

Panama is the second country to switch its recognition to Beijing since pro-independence Democratic Progressive Party chief Tsai Ing-wen became Taiwan leader last year, following a similar move by Sao Tome and Principe in December.

This, in addition to the World Health Organization's rejection of Taiwan representatives attending its annual conference in May, suggests that the principle of one China is now widely accepted by the international community and the space for Taiwan to continue to flaunt its banner of independence is rapidly shrinking.