It comes four days after the Solomon Islands made the same decision, and leaves Taiwan more isolated than ever with just 15 states left that recognise it. At a hastily arranged press conference, Taiwan's President Tsai Ing-wen said Kiribati's decision was a "mistake", adding that the country of just over 100,000 people had "given up a sincere friend and chosen to be China's chess piece".
Taiwan has been a de facto sovereign nation since the end of a civil war in 1949, but China still views the island as its territory and has vowed to seize it, by force if necessary. Over the decades, as China's economic and military power has grown, most countries - including the United States and most Western nations - have switched recognition to Beijing.
In the last decade, only a handful - largely impoverished countries in Latin America and the Pacific - have remained loyal to Taiwan. The only European state to still recognise Taiwan is the Vatican. Beijing stepped up its campaign to diplomatically isolate Taiwan after Tsai's 2016 election because she hails from a party that refuses to recognise the idea that the island is part of "one China".
On Friday, Tsai said more suppression from China was expected with fewer than 100 days to go until Taiwan's January elections. "They (China) have only one goal, that is to sway the outcome of the presidential election," she said. Earlier that day, Taiwanese Foreign Minister Joseph Wu announced that Taipei would immediately withdraw its diplomats and expected Kiribati to do the same.
He said Beijing had "lured Kiribati to change its diplomatic ties" with promises of investment and aid. Beijing praised Kiribati for cutting ties with Taiwan, saying it "highly appreciates the decision to resume diplomatic relations with China". Seven states have now made the switch during Tsai's tenure, during which China has also ramped up military drills and squeezed the island economically.