The signing of a Chinese-Gambian diplomatic communique in Beijing on Thursday marks the latest development in the ongoing diplomatic rivalry between Taiwan and China, which claims the self-governing island democracy is Chinese territory with no right to diplomatic recognition.
The move follows the election in January of Tsai Ing-wen as Taiwan's next president despite Beijing's warnings of possible disruptions in relations.
Tsai has refused to meet Beijing's demand that she endorse China's claim that the two are part of a single Chinese nation and observers are watching closely at how China will respond in the run-up to her May 20 inauguration.
Taiwan has just 22 diplomatic allies, mostly small nations in Africa, the Pacific, Central America and the Caribbean.
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On Friday, China's Communist Party newspaper Global Times warned Tsai's pro-independence Democratic Progressive Party against "provoking the mainland," but said the diplomatic truce still held.
Beijing's relations with Gambia "shouldn't be interpreted as a sign that the mainland will restart a 'diplomatic war' with Taiwan," the paper said. "It is unnecessary for the mainland to flex its muscles toward Taiwan in this way.
China frequently woos Taiwan's allies with extensive promises of development aid, although Chinese Foreign Ministry spokesman Lu Kang said only that China would discuss "friendly and reciprocal cooperation" following the resumption of ties.
With just 2 million people and little in the way of natural resources, Gambia is one of Africa's smallest and poorest nations.