Half of the 23 countries that maintain official diplomatic relations with Taiwan are in Central and South America. One of the main objectives of China’s growing presence in this region is to achieve diplomatic recognition from these countries. This article examines the factors that are taken into consideration by Latin American and Caribbean countries when deciding whether to establish official diplomatic relations with China or with Taiwan. In this analysis,the author claims that over the short-term, there will not be a rapid, sharp drop in the number of Taiwan’s political allies in the region, in spite of the fact that Costa Rica decided to establishdiplomatic relations with Beijing in June 2007.