The move comes two years after neighboring countries decided to end their boycott of Qatar.

The Honduran government said it views the island as "an inalienable part of Chinese territory." Taiwan then announced it would close its embassy in Honduras and withdraw its ambassador there.

It has become a major preoccupation of many governments across the globe; how to build a productive diplomatic relationship with China. This particularly as tensions between Washington and Beijing continue to ratchet upwards with Beijing's Winter Olympic Games in February now facing an American diplomatic boycott. Annette Young talks to Canadian-Chinese journalist and author, Joanna Chiu, whose new book 'China Unbound' argues how democracies have effectively enabled Beijing's campaign to increase its global influence. She speaks about the diplomatic toolkit required to ensure a healthy and robust relationship with China.

China said it took the punitive step after self-ruled Taiwan opened a de facto embassy in Lithuania.

The two North African countries have been at loggerheads for decades, mainly over the disputed Western Sahara region. Algeria said its neighbor had committed "hostile actions," while Morocco refuted those claims.

The historic deal was brokered by former US President Donald Trump and sees Muslim-majority Kosovo recognize Jerusalem as the capital of Israel.