The Solomon Islands' government has voted to curb official ties with Taiwan, its Central News Agency has reported.
It means that now only 16 countries maintain official diplomatic ties with the island.
Taiwan has responded by terminating its diplomatic relations with the Solomon Islands.
"The cabinet of the Solomon Islands government decided to switch diplomatic relations to the People's Republic of China. The government hereby declares the termination of diplomatic relations with the Solomon Islands with immediate effect," Foreign minister Joseph Wu announced at a press conference in Taipei on Monday.
According to a Reuters report in early September, a ministerial task force was formed by Solomon Islands Prime Minister Manasseh Sogavare to consider the benefits of changing the country's diplomatic recognition of the Chinese government from Taipei to Beijing.
Beijing and Taipei have been in disagreement over the status of Taiwan since 1949. Both claim their right to be the sole legitimate government of China, relying on the One China Policy. The People’s Republic of China insists there is only "one China" with Taiwan being an inalienable part of it. Under an accord signed in 1992, both Beijing and Taipei agree there is only one China and that Taiwan belongs to China but the two have different positions on which entity is China's legitimate governing body.