Panama becomes the first Latin American country to withdraw from the Chinese Belt and Road Initiative. This decision marks a turning point in the relationship between Panama and China, which had established ties in 2017, when Panama stopped recognizing Taiwan. The Chinese embassy in Panama expressed its displeasure with this resolution and urged Panama to reconsider its position.
China has sought to increase its influence in Panama through infrastructure projects, such as the construction of a bridge over the Canal, among others. Panama's withdrawal from the Belt and Road Initiative and a significant port agreement marks a change in the dynamics of the region. Panama's exit could redefine the future of Chinese investments in the region.
The Panama Canal, of strategic importance for global trade, has been a source of concern regarding its operation and transparency under Chinese companies. Several countries have reconsidered their participation in the Chinese initiative due to debt and sovereignty concerns, reflecting a broader trend of cooling towards the initiative worldwide.
U.S. companies have announced relevant trade agreements in Panama, which could change the port dynamics in the region. Panama's refusal to renew its participation in the Belt and Road Initiative is part of a broader review of the region regarding its alliances and commitments with China.
It is important to note that Brazil has already expressed its decision not to participate in the Chinese initiative, in line with a global trend of reviewing relationships with China.
