China established diplomatic ties with Honduras on Sunday after the Central American country ended its decadeslong relationship with Taiwan, as Taiwan's foreign minister accused Honduras of demanding exorbitant sums before being lured away by Beijing.

The ending of ties with Taiwan had been long expected after the Honduran foreign minister traveled to China last week to open relations and President Xiomara Castro said her government would start ties with Beijing.

China said its foreign minister, Qin Gang, and Honduran Foreign Minister Eduardo Enrique Reina signed the deal on diplomatic recognition in Beijing, ending relations with Taiwan dating back to the 1940s.

In a brief statement late on Saturday announcing the severing of ties, the Honduran Foreign Ministry said it recognized the People's Republic of China as the only legitimate government that represents all of China and that Taiwan is an "inseparable part of Chinese territory."

China claims democratically ruled Taiwan as its own territory with no right to state-to-state ties, a position Taipei strongly rejects. China demands that countries with which it has ties to recognize its position.

Speaking on Sunday in Taipei shortly after the announcement, Taiwan Foreign Minister Joseph Wu said Castro, who took office early last year, and her government had "always had illusions" about China and China's "luring" had never stopped.

"The Foreign Ministry and embassy grasped the relevant information and handled it carefully. However, the Castro government also asked us for billions of dollars in huge economic assistance and compared prices for assistance programs provided by Taiwan and China," Wu said.

Neither the Chinese nor the Honduran statements made mention of aid.

Wu said that the Honduran foreign minister wrote to Taiwan on March 13, the day before Castro's original announcement, demanding a total of $2.45 billion in aid, including the construction of a hospital and a dam and to write off debt.

"It felt like what they wanted was money, not a hospital," Wu said.

Honduras Foreign Minister Eduardo Enrique Reina said last week the $2.5 billion figure was "not a donation," but rather "a negotiated refinancing mechanism."

Taiwan now only has formal diplomatic relations with 13 countries, mostly poor and developing countries in Central America, the Caribbean and the Pacific.

Taiwanese President Tsai Ing-wen is due to depart Wednesday for a visit to allies Guatemala and Belize en route to the U.S. She is expected to meet U.S. House Speaker Kevin McCarthy in Los Angeles at the end of the trip.

Wu said he was "highly suspicious" of the timing of the Honduran decision so close to Tsai's overseas tour.

"China seems to be doing this intentionally," he said.

The United States has been watching with concern as China expands its footprint in its backyard by taking away Taiwan's Central American allies, and has repeatedly warned countries not to believe China's promises of aid.

The U.S. State Department said while the Honduran action was a sovereign decision, it was important to note China "often makes promises in exchange for diplomatic recognition that ultimately remain unfulfilled."

"Regardless of Honduras' decision, the United States will continue to deepen and expand our engagement with Taiwan," it said in a statement.

Relations between Honduras and Taiwan date back to 1941, when the government of the Republic of China, which remains Taiwan's official name, was still in China before it fled to the island in 1949 after loosing a civil war with the Mao Zedong's communists.

The U.S., Japan and other nations have recently made bigger displays of support for island and its population of around 23 million people. U.S. President Joe Biden has repeatedly stated that the U.S. would defend Taiwan against a Chinese attack, comments that have angered Beijing. In December, the U.S. authorized up to $10 billion in weapons sales to Taiwan over five years.

Earlier this year, the Czech Republic’s new president, Petr Pavel, drew a stiff rebuke from Beijing after holding a phone conversation with Tsai days after his election. He later said he hopes to meet Tsai, who will leave office in 2024.

The last nation to switch diplomatic relations to Beijing from Taipei was Nicaragua in 2021. The Pacific Island of Kiribati did so in 2019.

Paraguay, among nations that still recognize Taiwan, holds general elections in April. The ruling Colorado Party has historically has been pro-Taiwan, and a key driver behind not recognizing China.