China agreed to pay for a stadium and library in El Salvador after the island nation cut ties with Taiwan.

"President Xi Jinping has just given El Salvador a huge gift, which is a non-refundable aid, fully managed by our government," President El Salvador Nayib Bukele posted on Twitter last night about projects, including a modern stadium with large capacity.

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Chinese President Xi Jinping and President El Salvador Nayib Bukele at a welcome ceremony in Beijing on December 3 Photo: AFP

The announcement was posted by Bukele after a meeting with China's President on December 3 during the first visit to Beijing.

The two countries also issued a joint statement saying that Beijing will pay for the construction of two water supply projects, as well as conduct "repair and expansion" of Surf City resort and La Libertad dock along the El Salvador coast. The leaders of the two countries also signed economic cooperation agreements and plans to make it easier for Chinese tourists to come to El Salvador.

China has increased its overseas infrastructure investment and development in recent years, raising concerns that countries benefiting from Beijing-backed loans risk falling into debt traps.

But Bukele reassured in many tweets today that "some opposites" tried to strike deals signed with China.

"What do they not understand in this grant? It's not a loan, it's an aid," explained the Central American national leader.

El Salvador recognized China since August last year, becoming the third country in 2018 to end relations with Taiwan, after the Dominican Republic and Burkina Faso. In September this year, the island nation of Kiribati recognized Beijing, four days after Solomon did the same. Taiwan currently maintains relations with 15 countries around the world.

China considers Taiwan to be part of its territory and believes that the island does not have the right to formally establish relations with any country. Cross-strait relations have been strained since Thai Anh Van, who opposed the "One China" policy, took over the leadership of Taiwan.

China pressures countries with economic maintenance of Taipei. The United States, which recognized the "One China" policy, last year expressed "profound disappointment" when El Salvador and Taiwan ended relations.