"Hence the Government of the Dominican Republic (DR) severs "diplomatic relations" with Taiwan as of this day", it said.
Responding to the decision, Taiwan's foreign minister Joseph WU said his ministry "strongly condemns China's objectionable decision to use dollar diplomacy to convert Taiwan's diplomatic allies".
But the Dominican Republic's switch shows that China has the diplomatic means to pressure Taiwan as well, said Ross Feingold, a Taipei-based senior adviser at DC International Advisory, a political risk consultancy. Those allies are Belize, El Salvador, Guatemala, Honduras, and Nicaragua.
Taiwan's Apple Daily reported that the Dominican decision could be related to its attempt to gain a seat on the United Nations Security Council this year, which requires the support of permanent member China.
Despite Taiwan's population size, government, currency and diplomatic relations with other countries, the People's Republic of China maintains its "One-China" policy, which states that Taiwan is merely a wayward province with no right to a state. Written permission must be obtained before reprint in online or print media.
It said there was a "lack of follow-through on China's promises to former diplomatic allies of Taiwan", including an unfulfilled pledge to build highways and a refinery in Costa Rica and provide $140 million in aid to São Tomé and Príncipe.
Panama ended its long-standing relationship with...
Relations between the two have worsened since the island elected Tsai Ing-wen as president in 2016.
Beijing announced Tuesday morning that the two countries would exchange ambassadors "as soon as practicable".
Wu reminded the worldwide community of China's notorious record of not following through on promises it has made to Taiwan's former allies to shift their allegiance.
Its actions had damaged cross-strait relations and eroded trust, said Wu, who blamed China's financial incentives for ending the 77-year alliance with Dominican Republic.
"Today's event will create a stream of diplomatic switching from Taipei in a matter of months, if not in years", Richard W. Hu, a professor of politics at the University of Hong Kong, said in an email.
"This important and correct decision by the Dominican Republic absolutely accords with the basic interests of the country and its people", Wang said.
"However, history and the socioeconomic reality force us now to change direction", he explained.
"Developing nations should be aware of the danger of falling into a debt trap when engaging with China", he said.
Beijing considers it a renegade province to be brought back into the fold and is increasing global pressure to prevent any recognition of the island.