An important geopolitical change has occurred with Panama’s official withdrawal from China’s Belt and Road Initiative (BRI). The decision by President José Raúl Mulino demonstrates the growing hostilities between the US and China, particularly with regard to the vital Panama Canal.
Panama formally declared its intention to leave China’s Belt and Road Initiative. According to President Mulino, he gave Beijing’s diplomats a 90-day notice period to withdraw from the 2017 memorandum of understanding.
The History of Panama’s Participation After forging diplomatic ties with Beijing and severing ties with Taiwan, Panama became the first Latin American nation to join the BRI in November 2017. Improving infrastructure connectivity and trade between Asia and Latin America was the initiative’s main goal. After that, Chinese businesses were able to secure significant projects like a fourth bridge overthe Panama Canal.American Concerns China’s increasing influence in Panama has drawn criticism from the US. The neutrality of the Panama Canal may be jeopardized, according to U.S. Secretary of State Marco Rubio, who underlined the dangers of Chinese investments in important infrastructure projects. Donald Trump, the former president of the United States, has also questioned Panama’s relationship with China and even suggested that the United States might regain control of the Panama Canal.
China’s Response China claims that its investments have improved Panama’s infrastructure and economy, and it has criticized the United States for pressuring Panama to leave the BRI. Lin Jian, a spokesman for China’s foreign ministry, said that China deeply regrets Panama’s decision and urged them to fight outside intervention.
The Viewpoint of Panama President Mulino questioned the advantages of the BRI deal for Panama. Mulino denied that the United States had any influence over the decision to leave the BRI, despite American concerns.
Effects and Prospective Consequences Panama’s decision to withdraw fits with a larger pattern in which nations are reconsidering their involvement in the BRI because of worries about political influence and debt dependency. As other nations assess their strategic alliances, this choice may also have an effect on upcoming Chinese investments in Latin America.
