Panama Withdraws from China's Belt and Road Initiative Amid US Pressure
Panama has formally withdrawn from China's Belt and Road Initiative (BRI), a move announced by President Jose Raul Mulino on Thursday, February 6, 2025. This decision, which comes amid rising pressure from the United States, marks a significant shift in Panama's foreign policy.
Key Details:
Official Announcement: President Mulino confirmed that the Panamanian Embassy in Beijing had provided the required 90-day notice of its decision not to renew its involvement in the BRI. Panama joined the initiative in 2017 under a previous administration.
US Influence: The withdrawal follows increased pressure from the Trump administration to curtail China's growing influence in the Panama Canal region. US Secretary of State Marco Rubio visited Central America and conveyed Washington’s concerns over Chinese influence in Panama.
China's Reaction: China has expressed regret over Panama's withdrawal, with a Foreign Affairs spokesman urging Panama to "resist external interferences". China's Ambassador to the UN remarked that it would be a "regrettable decision" if Panama scaled back its collaboration due to US influence.
Panama's Stance: Mulino stated that the decision to withdraw from the BRI was solely Panama's, noting that the country had seen minimal benefits from the initiative. He also denied US State Department claims that Panama had reached a deal allowing US warships to transit the Panama Canal for free.
BRI's Impact: The BRI, launched by China in 2013, aims to connect Asia with Africa and Europe through land and maritime networks. Panama joined the initiative in 2017, securing increased Chinese investments in infrastructure.
Future Outlook: Panama's withdrawal from the BRI signals a shift in its foreign policy. Some analysts believe China will continue to invest in Panama if the country requires financial support. Simultaneously, China may pursue interests in regions with less resistance.
Concerns over Chinese Influence:
The US has long been concerned about China’s growing role in Panama, particularly regarding the Panama Canal.
These concerns include:
Control of Infrastructure: Rubio warned that Chinese control of critical infrastructure threatens the canal’s neutrality.
Economic Influence: Panama owes China 60% of its $24 billion external debt.
Hutchison Holdings: An audit of Hutchison Holdings, which operates two terminals at the canal's entrances, is ongoing.
Impact on Panama:
Mulino's decision to withdraw from the BRI may signify a new phase of scrutiny concerning China's presence in Panama. Panama’s president stated that his administration would assess whether an early termination of the agreement is possible
Panama has formally withdrawn from China's Belt and Road Initiative (BRI), a move announced by President Jose Raul Mulino on Thursday, February 6, 2025. This decision, which comes amid rising pressure from the United States, marks a significant shift in Panama's foreign policy.
Key Details:
Official Announcement: President Mulino confirmed that the Panamanian Embassy in Beijing had provided the required 90-day notice of its decision not to renew its involvement in the BRI. Panama joined the initiative in 2017 under a previous administration.
US Influence: The withdrawal follows increased pressure from the Trump administration to curtail China's growing influence in the Panama Canal region. US Secretary of State Marco Rubio visited Central America and conveyed Washington’s concerns over Chinese influence in Panama.
China's Reaction: China has expressed regret over Panama's withdrawal, with a Foreign Affairs spokesman urging Panama to "resist external interferences". China's Ambassador to the UN remarked that it would be a "regrettable decision" if Panama scaled back its collaboration due to US influence.
Panama's Stance: Mulino stated that the decision to withdraw from the BRI was solely Panama's, noting that the country had seen minimal benefits from the initiative. He also denied US State Department claims that Panama had reached a deal allowing US warships to transit the Panama Canal for free.
BRI's Impact: The BRI, launched by China in 2013, aims to connect Asia with Africa and Europe through land and maritime networks. Panama joined the initiative in 2017, securing increased Chinese investments in infrastructure.
Future Outlook: Panama's withdrawal from the BRI signals a shift in its foreign policy. Some analysts believe China will continue to invest in Panama if the country requires financial support. Simultaneously, China may pursue interests in regions with less resistance.
Concerns over Chinese Influence:
The US has long been concerned about China’s growing role in Panama, particularly regarding the Panama Canal.
These concerns include:
Control of Infrastructure: Rubio warned that Chinese control of critical infrastructure threatens the canal’s neutrality.
Economic Influence: Panama owes China 60% of its $24 billion external debt.
Hutchison Holdings: An audit of Hutchison Holdings, which operates two terminals at the canal's entrances, is ongoing.
Impact on Panama:
Mulino's decision to withdraw from the BRI may signify a new phase of scrutiny concerning China's presence in Panama. Panama’s president stated that his administration would assess whether an early termination of the agreement is possible
