China Used Reserves To Sway Costa Rica.

The article reports that China utilized its foreign-exchange reserves to purchase bonds from Costa Rica in order to persuade the Latin American nation to shift diplomatic recognition to China from Taiwan. The information was contained in documents released by the Costa Rican government. A long tradition of "checkbook diplomacy" practiced by rivals China and Taiwan led to the Costa Rica purchase. China's economic strength has allowed it to outmaneuver Taiwan and convince countries to change their ties.