INA- sources
China's announcement of the move came shortly after Tegucigalpa said it had officially severed ties with Taipei.
"China and Honduras just established diplomatic relations," tweeted Hua Chunying, a spokeswoman for the Chinese foreign ministry.
The switch, just days after Honduran Foreign Minister Enrique Reina visited Beijing, leaves Taiwan with just 13 countries that recognise it over China, having lost several Latin American allies in recent years.
China considers self-ruled, democratic Taiwan a part of its territory, to be retaken one day -- by force, if necessary. Under its 'One China' policy, it does not allow countries to recognise both Beijing and Taipei.
Earlier, Reina said that upon instructions from President Xiomara Castro he had "communicated to Taiwan the decision to cease diplomatic relations", a ministry statement said.
"The government of the Republic of Honduras recognises the existence of only one China in the world, and that the government of the People's Republic of China is the only legitimate government that represents all of China," the Honduras foreign ministry said.
"Taiwan is an inalienable part of Chinese territory."
Taiwan's President Tsai Ing-wen said the switch was "part of a series of China's coercion and intimidation".
"China has suppressed the international space of (Taiwan) for a long time, unilaterally endangering regional peace and stability," read a statement from her office.
Gold prices stabilize with anticipation of US inflation data
Russia: The death toll from the shooting in Moscow has risen to 40 people
PM financial advisor unveils benefits of joining EBRD
Prime Minister will visit Washington on April 15
Three defendants who wanted to sell a child were arrested in Baghdad
President Rashid receives Alina Romansky, the US Ambassador to Baghdad