US Secretary of State Welcomes Panama’s Exit from China’s Belt and Road Initiative

US Secretary of State Marco Rubio praised Panama’s decision to allow its involvement in China’s global infrastructure plan, the Belt and Road Initiative (BRI), to expire. In a statement, Rubio called the move “a great step forward” for strengthening ties with the United States.

Panama’s Shift Away from Chinese Initiative

Any move by Panama to distance itself from Chinese President Xi Jinping’s Belt and Road Initiative represents a strategic victory for the United States. Washington has criticized the initiative, arguing that Beijing uses it as a tool for “debt trap diplomacy” to enhance its global influence.

Rubio’s Recent Trip to Panama

Rubio made his first overseas visit as the US top diplomat under Donald Trump to Panama, a close ally in Latin America. During the trip, he pressured the country to reassess its relationship with China. Rubio held talks with Panama’s president, José Raúl Mulino, addressing concerns over Panama’s involvement in the BRI.

Following these discussions, Mulino announced that Panama would not renew its broad agreement to participate in the Chinese initiative, which was set to expire in two to three years. This decision signals a shift in Panama’s economic and geopolitical priorities.

US Perspective on Panama’s Actions

Rubio praised Mulino’s decision, emphasizing its importance for US-Panama relations, the Panama Canal’s autonomy, and the broader strategic interests of the United States. He highlighted President Joe Biden’s leadership role in ensuring national security and fostering prosperity for the American people.

Expert Analysis of Panama’s Move

Professor Yanzhong Huang, a senior fellow at the New York-based Council on Foreign Relations, views Panama’s decision as a significant win for Washington’s “brinkmanship diplomacy” in Latin America. He noted that countries in the region, which rely heavily on US support and trade, are more likely to align with US interests compared to countries in other parts of the world.

However, Huang cautioned that replicating such influence in Asia would be challenging. China’s significant economic reach in the region presents considerable obstacles.

China’s Response and Panama’s Past Involvement

China’s embassy in Washington did not immediately comment on the initiative or related issues concerning the Panama Canal. Panama, a key player in international trade, had been the first Latin American country to endorse the BRI in early 2018, shortly after switching diplomatic ties from Taiwan to China.

International Critique of China’s Belt and Road Initiative

Despite China’s claim that the BRI has boosted global development through infrastructure projects, it has faced criticism. Some nations, including Italy, have withdrawn from the initiative due to concerns about project costs and repayment difficulties.

US Concerns Over Chinese Operations Near Panama Canal

The United States has expressed concerns about Chinese companies’ operations near the Panama Canal, a vital waterway. A Hong Kong-based firm operates two ports at the canal’s entrances, while two Chinese state-owned firms are building a fourth bridge over one entrance.

The US state department conveyed President Trump’s message to Rubio, stating that China’s presence in the canal zone is a threat and a violation of the US-Panama treaty.

Potential Review of Chinese Port Concessions

Following discussions with Rubio, President Mulino indicated a willingness to review the 25-year concession granted to Hong Kong-based CK Hutchison Holdings for operating the ports. The contract, renewed in 2021, has been a subject of criticism by US lawmakers and the government for allegedly violating Panama’s neutrality treaty.

Future Directions and Ties

Rubio described Mulino as a friend to the US and Panama as a strong ally. He expressed optimism about the outcome of the upcoming audit and its potential to reshape the business environment around the Panama Canal.

Ryan Berg, director of the Americas Program at Washington’s Center for Strategic and International Studies, suggested that the audit could present an opportunity for Panama to renegotiate the concessions. This could eventually open the possibility for non-Chinese entities to take over the port operations, ensuring a more balanced economic environment.

Conclusion

Panama’s decision to let its participation in the Belt and Road Initiative expire marks a significant shift in its geopolitical stance. While this move is a strategic victory for the United States, it remains to be seen whether similar actions can be replicated in other regions, especially in Asia, where China’s influence remains strong.

The upcoming audit of the port concessions near the Panama Canal could provide further insights into the feasibility of renegotiating these agreements and ensuring the canal’s neutrality and security.

Takeaways

• Panama’s decision to expire its participation in the Belt and Road Initiative is a significant departure from previous commitments.
• This move is seen as a strategic victory for the United States, reinforcing its influence in Latin America.
• The upcoming audit of the香港-based port concessions could lead to changes in the governance and operation of the Panama Canal.
• The broader context of China’s economic reach and its impact on global infrastructure projects remains a critical area of geopolitical concern.

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