Taiwan has won a small victory in its struggle with China for global recognition, by forging ties with the tiny South Pacific island of Vanuatu.
The move means Taiwan now has 27 diplomatic allies - mostly small Latin American and African nations.
Beijing insists that Taiwan is part of China, and has persuaded most countries to sever ties with Taipei.
The two sides regularly offer economic incentives and other aid to try and win foreign countries' recognition.
It seems Wednesday's announcement did not just come as a surprise to China - but also to a senior Vanuatu official.
"This is a complete reversal of our One China policy of recognising mainland China," George Manuri, Vanuatu's foreign affairs department director-general, told the French news agency AFP.
Vanuatu pledged its allegiance to China just two months ago, AFP reported.
Forging links
Taiwanese Foreign Minister Mark Chen joined Vanuatu's Prime Minister Serge Vohor to announce the new link on Wednesday in Taipei.
Mr Chen insisted that the establishment of diplomatic relations with Vanuatu was not intended to provoke China.
Mr Vohor also said that the decision to recognise Taiwan was not taken to make an enemy of Beijing.
"We do not refuse to be friends with China, but the decision was made based on the welfare of our people," he said.
As a result of the agreement, Taiwan and Vanuatu plan to strengthen economic, technical and agricultural co-operation, according to the Taiwanese foreign ministry.