Panama has decided to step away from a major global project led by China. The country’s president, José Raúl Mulino, announced that it will not renew its deal with China’s Belt and Road Initiative (BRI). This decision came after a visit from Marco Rubio, the U.S. Secretary of State. With this move, Panama becomes the first Latin American nation to leave the initiative, which is seen as China’s way of increasing its influence worldwide.
The Belt and Road Initiative, started by China in 2013, is a global investment project. It funds infrastructure like roads, bridges, ports, and railways in different countries. China presents it as an opportunity for economic growth, but critics say it gives China too much control over key locations.
Panama, a small but strategically important country, was the first in Latin America to join the BRI. The decision to leave could affect China’s presence in the region and marks a significant shift in global politics.
U.S. Concern Over Chinese Influence in the Panama Canal
The Panama Canal is one of the most important waterways in the world. It connects the Atlantic and Pacific Oceans, making trade and shipping much faster. The U.S. used to control the canal but handed it over to Panama in 1999. Since then, China has invested in ports and businesses near the canal, raising concerns in the U.S.
During his visit, Marco Rubio stated that the U.S. “cannot, and will not, allow the Chinese Communist Party (CCP) to continue with its effective and growing control over the Panama Canal area.” The U.S. sees the canal as a key route for global trade and national security. Officials worry that too much Chinese involvement could give Beijing an advantage in controlling trade routes.
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The decision by Panama is seen as a victory for the U.S., which has been trying to push back against Chinese influence in Latin America. U.S. officials believe that China uses the BRI to create economic and political dependence on Beijing. By stepping away, Panama is sending a strong message about its independence.
China Faces Another Setback in Its Global Project
This is not the first time a country has pulled away from the Belt and Road Initiative. In late 2023, Italy became the first European country to exit the deal. Italian officials said that the agreement did not help increase trade with China as promised.
Brazil also considered joining the BRI last year. However, officials changed their minds, fearing the long-term consequences of signing a major deal with Beijing. Many nations worry that these agreements favor China more than the local economies.
Impact on China’s Presence in Latin America
For China, losing Panama is a major setback. Beijing considers Latin America a key region for its foreign policy. The Panama Canal is a critical trade route, and China’s investments in ports, logistics, and businesses nearby were meant to strengthen its presence. Now, Panama’s decision could encourage other countries to rethink their agreements with China.
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Michael Sobolik, a China analyst at the Hudson Institute, said that Panama’s move “reverses the Chinese Communist Party’s geopolitical gains in our own hemisphere.” U.S. officials have praised the decision, seeing it as a step toward reducing China’s control in the region.
Mauricio Claver-Carone, the U.S. special envoy for Latin America, said that Rubio’s visit helped restore American credibility in the region. The U.S. has been working to strengthen ties with Latin American nations, and this decision reinforces Washington’s influence.
As the world watches, Panama’s move could shape future decisions for other Latin American nations involved in China’s global investment projects. For now, the country has made its stance clear—it does not want to continue its partnership with China’s Belt and Road Initiative.
