BEIJING (AP) – On Friday, China vehemently criticized what it perceives as U.S. “coercion” after Panama decided not to renew a significant infrastructure agreement with Beijing. This decision followed a warning from Washington regarding Chinese influence over the Panama Canal, a vital waterway for global trade. Foreign Ministry spokesperson Lin Jian condemned the U.S. actions during a briefing, asserting that China “firmly opposes” the smear tactics and the undermining of its Belt and Road cooperation through pressure and coercion.
In the aftermath of Panama's decision, Assistant Foreign Minister Zhao Zhiyuan met with Panama’s ambassador to China, during which he lodged formal representations concerning the issue. The Belt and Road Initiative (BRI), spearheaded by President Xi Jinping, aims to strengthen China's ties with countries around the world by constructing infrastructure such as roads, railways, airports, and power plants. While the initiative has successfully completed significant projects, it has also sparked concerns related to debt sustainability and environmental impacts.
Panama's choice to step back from its agreement with China is viewed as a concession to the United States, particularly after U.S. Secretary of State Marco Rubio directed a warning to Panamanian President José Raúl Mulino. Rubio emphasized that Panama must swiftly reduce what President Donald Trump labels as “Chinese influence” in the canal area or risk potential U.S. retaliation. Despite the pressure from the new U.S. administration, Mulino has pushed back against discussions regarding the ownership of the canal, underscoring its critical importance to international commerce.
While the situation remains tense, there are indications that Panama may consider a compromise that could involve removing the Hong Kong-based Hutchison Ports company from operations on both sides of the canal. Hutchison has been granted a 25-year no-bid extension for management, and an audit is currently being conducted to evaluate the legitimacy of this extension, which may lead to a rebidding process in the future.
The Panama Canal has faced operational challenges recently, including decreased water levels due to drought conditions, which have impeded transit times. U.S. President Trump has expressed dissatisfaction over these delays, though they appear unrelated to Chinese involvement. Lin Jian noted that the Belt and Road Initiative has garnered active participation from over 150 countries and has yielded “fruitful results” for both Panama and China, though he did not provide specific examples to substantiate this claim.
In light of these developments, Lin emphasized that he hopes Panama will consider the broader context of bilateral relations and the long-term interests of both nations. He urged Panama to resist external interference and make judicious decisions moving forward.
