China’s top envoy to Panama has told CGTN that he is confident the new diplomatic relations between Beijing and the Central American nation will pay off.

Wang Weihua is the Permanent Representative of the Office of China-Panama Trade Development in Panama, and may become China’s first ambassador to the country.

In an exclusive interview, Wang discussed what paved the way for the forging of new ties.

 “China and Panama have had traditional economic relations for many years, even though we didn’t have diplomatic ties,” said Wang, describing how China is the “second biggest user” of the Panama Canal.

Panama’s decision to pursue ties with Beijing means agreements with Taipei have to be canceled. Wang said that “regarding the free trade agreement [previously agreed between Taiwan and Panama], there's a lot to be discussed…before making a decision. But all of the official agreements [between Taiwan and Panama] will have to be canceled.”

Wang said he did not have any specific information about whether Beijing would be pressuring other Central American countries that still have relations with Taipei to follow in Panama's footsteps. However he did confirm that other countries, including some Caribbean and Central American nations, are strongly interested in establishing diplomatic relations with China.