Speaking at a joint news conference with Castaneda after signing the joint communique, Wang Yi hailed El Salvador as "a new friend in Latin America and the Caribbean region" and "a new partner in promoting the Belt and Road Initiative and building a community of shared future for mankind".

China will work with El Salvador to achieve common development, enhance partnerships between China and the whole of Latin America, and make contributions to the collective rejuvenation of developing countries, he said.

Castaneda said his country remains committed to the one-China principle and will no longer have official relations or official contacts with Taiwan.

Salvadoran President Salvador Sanchez Ceren said in an address earlier on national television that "we are convinced that this is a step in the right direction, which corresponds to the principles of international law, international relations and the inevitable trends of our times".

El Salvador is the most densely populated country in Central America and also the location of the secretariat of the Central American Integration System.