Taipei: The Pacific island nation of Kiribati has become the second country this week to sever ties with Taiwan and switch diplomatic recognition to China.
According to the media report, the move comes four days after the Solomon Islands cut ties, leaving Taiwan with fewer allies in the region.
Beijing considers Taiwan to be a part of China and says it should unite with the Chinese mainland.
Only 15 countries now recognise the self-governing territory of Taiwan as a sovereign nation.
Taiwanese Foreign Minister Joseph Wu said that Beijing had used "dollar diplomacy" to poach one of Taiwan's last remaining allies by providing funds to procure several aeroplanes and ferries.
China is trying to "suppress and reduce Taiwan's international presence" and "ultimately destroy Taiwan's sovereignty", Wu said.
Since Tsai Ing-wen was elected the Taiwanese president in 2016, Taiwan has lost seven diplomatic allies. She is seeking re-election in January.
China has proposed that Taiwan be governed under a "one country, two systems" structure similar to Hong Kong.
Wu said that Kiribati's President had asked Taiwan to donate money to purchase commercial aeroplanes.
Taipei assessed its finances and declined, but offered to give preferential loans instead.
Those countries that have remained loyal to Taiwan are in Latin America and the Pacific, and the only European state to still do so is the Vatican.
Taiwan has been a de facto sovereign nation since the end of a civil war in 1949, but it has never formally declared independence from the mainland.
China's foreign ministry on Friday applauded the decision by the Pacific island of Kiribati to cut diplomatic ties with Taiwan.
It was the second setback for diplomatically-isolated Taiwan in less than a week, after a similar move by the Solomon Islands.
Taiwan accused Kiribati of siding with China because it wanted "massive financial assistance".
Geng responded that people who believe in "dollar diplomacy may not understand that certain principles cannot be bought with money."
Geng also reiterated China's wish to ease trade tensions with the United States.
