Panama Announces Termination of Major Agreement with China
Panama has decided to end its involvement in China's Belt and Road Initiative, as announced by President Jose Raul Mulino. Read the full article at RT.com.
TroibNews 
The US has demanded restrictions on Beijing’s alleged influence over a critical waterway in Panama.
On Sunday, President Jose Raul Mulino announced that Panama will not renew its involvement in China’s Belt and Road Initiative. This decision follows Mulino’s discussions with US Secretary of State Marco Rubio, who insisted on the need for “immediate changes” to the management of the Panama Canal, a strategic waterway created by the US in the early 20th century and handed over to Panama in 1999. The US government is concerned about China’s growing influence over the canal.
“The 2017 memorandum of understanding on the Belt and Road Initiative will not be renewed by my government,” Mulino stated to reporters after the meeting with Rubio, adding that his administration is considering the possibility of terminating the agreement sooner, as it isn’t set for renewal for another couple of years.
During their discussions, Rubio cautioned Mulino that permitting China’s involvement in the canal could breach the 1977 treaty with the US, which guarantees the waterway's permanent neutrality. He expressed that if Panama does not lessen Chinese influence, which Washington views as “a threat to the canal,” it may face potential repercussions from the US.
This warning from Rubio follows recent threats from US President Donald Trump, who indicated that Washington could reclaim control of the Panama Canal unless China’s presence around it diminishes and Panama reduces the “ridiculous fees” associated with its use.
Earlier on Sunday, Trump reiterated his stance, telling reporters, “China is running the Panama Canal," which was “given to Panama foolishly,” and added that the US is “going to take it back, or something very powerful is going to happen.”
In reaction to his discussions with Rubio, Mulino expressed that he did not see an immediate threat of US retaliation, characterizing their conversation as “respectful” and “positive.” He also dismissed any potential negotiations with the US regarding the canal's ownership.
“There is no doubt that the Canal is operated by our country and will continue to be so... President [Trump] has his opinion on the Chinese presence, which will be clarified in due time by the technical authorities of the canal,” Mulino remarked.
Chinese officials have maintained that they have no interest in encroaching on Panama’s sovereignty regarding the canal. In December, Chinese Foreign Ministry spokesperson Mao Ning emphasized that Beijing will always regard the Panama Canal as a permanently neutral international waterway.
Launched by Beijing in 2013, China’s Belt and Road Initiative is a global development initiative aimed at connecting countries worldwide through both overland and maritime routes, as well as digital and physical infrastructure. Panama was the first country in Latin America to sign onto this initiative.
Under this program, Hong Kong-based CK Hutchison Holdings secured a 25-year contract in 2021 to manage two ports at the entrances of the canal, while a consortium of Chinese companies began the construction of a $1.3 billion bridge over the waterway.
Alejandro Jose Martinez contributed to this report for TROIB News
On Sunday, President Jose Raul Mulino announced that Panama will not renew its involvement in China’s Belt and Road Initiative. This decision follows Mulino’s discussions with US Secretary of State Marco Rubio, who insisted on the need for “immediate changes” to the management of the Panama Canal, a strategic waterway created by the US in the early 20th century and handed over to Panama in 1999. The US government is concerned about China’s growing influence over the canal.
“The 2017 memorandum of understanding on the Belt and Road Initiative will not be renewed by my government,” Mulino stated to reporters after the meeting with Rubio, adding that his administration is considering the possibility of terminating the agreement sooner, as it isn’t set for renewal for another couple of years.
During their discussions, Rubio cautioned Mulino that permitting China’s involvement in the canal could breach the 1977 treaty with the US, which guarantees the waterway's permanent neutrality. He expressed that if Panama does not lessen Chinese influence, which Washington views as “a threat to the canal,” it may face potential repercussions from the US.
This warning from Rubio follows recent threats from US President Donald Trump, who indicated that Washington could reclaim control of the Panama Canal unless China’s presence around it diminishes and Panama reduces the “ridiculous fees” associated with its use.
Earlier on Sunday, Trump reiterated his stance, telling reporters, “China is running the Panama Canal," which was “given to Panama foolishly,” and added that the US is “going to take it back, or something very powerful is going to happen.”
In reaction to his discussions with Rubio, Mulino expressed that he did not see an immediate threat of US retaliation, characterizing their conversation as “respectful” and “positive.” He also dismissed any potential negotiations with the US regarding the canal's ownership.
“There is no doubt that the Canal is operated by our country and will continue to be so... President [Trump] has his opinion on the Chinese presence, which will be clarified in due time by the technical authorities of the canal,” Mulino remarked.
Chinese officials have maintained that they have no interest in encroaching on Panama’s sovereignty regarding the canal. In December, Chinese Foreign Ministry spokesperson Mao Ning emphasized that Beijing will always regard the Panama Canal as a permanently neutral international waterway.
Launched by Beijing in 2013, China’s Belt and Road Initiative is a global development initiative aimed at connecting countries worldwide through both overland and maritime routes, as well as digital and physical infrastructure. Panama was the first country in Latin America to sign onto this initiative.
Under this program, Hong Kong-based CK Hutchison Holdings secured a 25-year contract in 2021 to manage two ports at the entrances of the canal, while a consortium of Chinese companies began the construction of a $1.3 billion bridge over the waterway.
Alejandro Jose Martinez contributed to this report for TROIB News
