The Nicaraguan government shut down four organizations with ties to Taiwan on Wednesday, accusing them of failing to submit their financial reports, thereby violating non-profit laws. Nicaragua cut diplomatic relations with Taiwan over two years ago and established diplomatic ties with China instead.
The government of Nicaragua has also issued a decree stating that all assets of these four associations will be transferred to the state. Among the affected organizations are the Taiwanese Chamber of Commerce in Nicaragua and the Taiwanese-Nicaraguan Business Chamber.
Since establishing relations, Nicaragua and China have signed multiple agreements, including a $430 million loan to Nicaragua, constructing an airport, and a liquefied natural gas receiving terminal. The two nations also signed a free trade agreement last year. Only Guatemala and Belize in Central America maintain diplomatic relations with Taiwan. The last country to sever ties with Taiwan was Honduras in March of last year.
The shutdowns come amidst the Nicaraguan government intensifying its crackdown on non-governmental organizations. Since 2018, more than 3,500 organizations have been shut down following anti-government protests that were believed to be funded by certain non-governmental organizations.