PANAMA CITY -- Former Panamanian president Ernesto Perez on Friday called on his country to break ties with Taiwan and to establish diplomatic relations with China, a move undertaken by Costa Rica last week.

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Perez recommended President Martin Torrijos reevaluate which choice, maintaining diplomatic relations with China's province of Taiwan or establishing relations with the People's Republic of China, would benefit the country based on current national interest.

Perez, a member of the Revolutionary Democratic Party (PRD), urged Torrijos to consider Panama's new foreign policy towards China.

Costa Rican President Oscar Arias announced on Wednesday that his country had broken off relations with Taiwan and established diplomatic ties with China .

Julio Yao, director of Panama's Justice and Peace Service (Serpaz) organization, also expressed his support for forging diplomatic relations with China, saying it would benefit Panama's economic development.

Yao said Panama should establish relations with China because the Asian country has become one of the world's most important economies.