(CNN) Taiwan has expressed "deep anger and regret" after losing one of its few diplomatic allies, deepening the island's international isolation.

China announced Tuesday that it had established ties with Panama after the central American country signed a joint communique and stressed it would not maintain any official ties with Taiwan.

"It yielded to Beijing because of economic benefits, did a diplomatic turn in a very unfriendly way and deceived the government of the Republic of China (Taiwan) until the last minute," David Lee, Taiwan's foreign minister said.

He said Taiwan was also cutting its diplomatic ties with Panama to "safeguard" the "nation's sovereignty and dignity."

China views Taiwan as an integral part of its territory that is to be taken by force if necessary. Beijing has missiles pointed at the island.

Read More