Nicaraguan President Daniel Ortega has said the resumption of diplomatic relations with China is "good news" for the Nicaraguan people. 

Ortega made the remarks at a graduation ceremony for military officers in the capital city of Managua, hours after the Central American country restored relations with the People's Republic of China (PRC) and severed links with Taiwan.

In his speech on Friday local time, Ortega recalled how Nicaragua-China relations have developed and talked about his visit to China in the 1980s when the two countries first established diplomatic relations, adding that the country then is no comparison to China today.

He said now as an economic power, China is developing fast in areas like people's livelihoods and science and technology.

It is also developing ties with regional countries through different mechanisms, such as the Community of Latin American and Caribbean States (CELAC), he said.

China and Nicaragua signed the joint communique on the resumption of diplomatic relations between the two countries in Tianjin, north China. 

Nicaragua recognizes that there is but one China in the world, the government of the PRC is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China's territory, according to the communique.