Rubio Applauds Panama’s Move to Exit Chinese Infrastructure Plan as a ‘Great Step Forward’

The U.S. State Department, through Rubio, conveyed a message from Trump about viewing China's presence as a threat to the canal's neutrality and a potential violation of the U.S.-Panama treaty from 1977, which ensures the canal remains open to all nations.

Rubio Applauds Panama's Move to Exit Chinese Infrastructure Plan

U.S. Secretary of State Marco Rubio has welcomed Panama’s decision to let its participation in China’s expansive Belt and Road Initiative (BRI) get terminated, labeling it as a “great step forward” for U.S.-Panama relations. This announcement comes in the wake of Rubio’s visit to Panama, where he aimed to pressure the country regarding its ties with Beijing.

Background and Recent Events

Rubio’s visit to Panama was strategically timed to address concerns over China’s influence in the region, particularly around the Panama Canal. His trip followed a series of statements by U.S. President Donald Trump, who has expressed intentions to take control of the canal, claiming it was being operated by China, without evidence. The Panama Canal, a critical artery for global trade, was built by the U.S. in the early 20th century and handed over to Panama in 1999.

During Rubio’s visit, he met with Panamanian President José Raúl Mulino, who confirmed that Panama would not renew its agreement with the Chinese Belt and Road Initiative, which was initially endorsed by Panama in 2017. This initiative, spearheaded by Chinese President Xi Jinping, aims to enhance China’s global influence through infrastructure development but has been criticized internationally as a form of “debt trap diplomacy.”

Details of the Decision

President Mulino revealed that the agreement was due to expire in two to three years and hinted at the possibility of terminating the deal earlier. This move is seen as a direct response to U.S. concerns about Chinese influence, especially concerning the strategic importance of the Panama Canal. Rubio took to X (formerly Twitter) to commend this decision, stating it was beneficial for U.S.-Panama relations, ensuring the canal’s neutrality, and aligning with Trump’s leadership in securing U.S. national interests.

U.S. Concerns and Actions

The U.S. has long been wary of Chinese enterprises near the Panama Canal, notably the operations of a Hong Kong-based firm, CK Hutchison Holdings, which manages ports at both ends of the canal. Additionally, two state-owned Chinese companies are constructing a fourth bridge over one of the canal’s entrances, further escalating U.S. fears of Chinese strategic positioning.

The U.S. State Department, through Rubio, conveyed a message from Trump about viewing China’s presence as a threat to the canal’s neutrality and a potential violation of the U.S.-Panama treaty from 1977, which ensures the canal remains open to all nations. In response, Mulino indicated a willingness to audit and possibly reconsider the 25-year concession granted to CK Hutchison Holdings for port operations, which has been a point of contention with U.S. lawmakers concerned about China’s expansionist activities in Panama.

Implications and Reactions

This diplomatic shift by Panama could reshape the geopolitical landscape in Central America, potentially strengthening U.S. influence in the region while curtailing China’s. Rubio’s commendation underscores a strategic win for U.S. foreign policy, aiming to counteract what it perceives as China’s overreach in American spheres of influence.

Ad Banner

However, China has not officially responded to these developments, but its embassy in Washington has previously dismissed allegations of controlling the canal as baseless. The decision by Panama might also prompt other countries in Latin America to reevaluate their engagements with China, especially under the Belt and Road Initiative, given the U.S.’s assertive stance.

The move by Panama to distance itself from the Belt and Road Initiative marks a pivotal moment in international diplomacy, highlighting the ongoing trade war between the U.S. and China. Rubio’s visit and the decisions by Panama underscore the interplay of economic cooperation in shaping global trade routes and alliances.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Receive the latest news

Subscribe To Our Newsletter

Get notified about new articles