Honduras' new president has launched a review of agreements signed with China by the previous administration, a move that could reshape diplomatic ties in Central America. The review process opens the door for the US to strengthen its influence in the region and potentially persuade Honduras to recognize Taiwan instead of Beijing.

The review signals a potential geopolitical shift in one of Latin America's smaller economies. China has increasingly expanded its footprint across Central America through infrastructure loans and diplomatic agreements, competing with US influence in what Washington considers its historical backyard. Honduras previously established diplomatic relations with Beijing in 2023.

For US businesses and investors, a Honduran pivot could create new opportunities in a market of roughly 10 million people. Taiwan's potential recognition would represent a significant diplomatic victory for Washington at a time when Beijing continues to deepen economic ties across the developing world.