The two parties said in a joint statement released that there was consensus to engage in discussions on a bilateral free trade agreement.
On March 26, Honduras became the 182nd nation to establish diplomatic relations with China.
The six-day visit was announced by the Chinese Foreign Ministry just two days after the inauguration of the Chinese embassy in the Honduran capital Tegucigalpa.
The move leaves Taiwan with only 13 formal allies, mostly poor and developing countries in Central America, the Caribbean and the Pacific.
The communique said that the government Honduras shall sever "diplomatic relations" with Taiwan and undertakes that it shall no longer develop official relations with Taiwan.
Honduras did not wait for Taiwan’s response before President Xiomara Castro sent her tweet, a report said.
Honduras is one of the remaining 14 countries that still have diplomatic relations with the Taiwan region.