The US will re-evaluate its relationship with El Salvador after the Central American country severed diplomatic ties with Taiwan in favour of establishing formal links with China, the White House said on Thursday, in a move that signals a hardening approach from Washington toward Beijing’s foreign policy.

On Tuesday, El Salvador  became the third state to switch loyalties in recent months, following moves by Burkina Faso and the Dominican Republic in May, and cuts the number of countries with which Taiwan has formal diplomatic ties to 17.

Taiwan’s foreign minister Joseph Wu said that change came after the government of El Salvador “repeatedly demanded large amounts of funds from Taiwan” for a port development that had “tremendous debt risks for both Taiwan and El Salvador”. China denied the claims.