US Secretary of State Marco Rubio has welcomed Panama’s decision to let its participation in China’s global infrastructure plan expire, calling it a ‘great step forward’ for US-Panama relations. This move is seen as a win for Washington, which has argued that Beijing uses the scheme for ‘debt trap diplomacy’ to cement its global influence.
US Secretary of State Marco Rubio has welcomed Panama’s decision to let its participation in China‘s global infrastructure plan expire, calling the move ‘a great step forward‘ for its ties with the United States.
Marco Rubio is an American politician serving as a United States Senator from Florida since 2011.
Born on May 28, 1971, in Miami, Florida, he rose to prominence after serving as Speaker of the Florida House of Representatives from 2006 to 2008.
Rubio's background includes working as a waiter and a bartender before entering politics.
He was a key speaker at the '2012 Republican National Convention' and ran for president in the '2016 election.'
The announcement comes after Rubio visited Panama to pressure the country over its ties with Beijing. Any move by Panama to distance itself from Chinese President Xi Jinping’s signature Belt and Road Initiative (BRI) represents a win for Washington, which has argued that Beijing uses the scheme for ‘debt trap diplomacy‘ to cement its global influence.
The Belt and Road Initiative (BRI) is a global development strategy proposed by China in 2013.
It aims to promote economic cooperation, trade, and investment among participating countries through infrastructure development, industrialization, and cultural exchange.
The initiative consists of two main components: the Silk Road Economic Belt (SREB) , which focuses on land-based connectivity, and the Maritime Silk Road (MSR) , which emphasizes sea-based trade.
Over 130 countries have expressed interest in joining BRI, with a total investment value of over $1 trillion.
Panama’s Decision: A Win for the US
Rubio made his first overseas trip as top US diplomat under Donald Trump to Panama, a close US partner in Latin America. He put pressure on the country over its ties with China, and after talks with Rubio, Panama’s president José Raúl Mulino said that his country’s broad agreement to contribute to the Chinese initiative will not be renewed.
Located in Central America, Panama connects North and South America through the Isthmus of Panama.
The country has a rich history dating back to pre-Columbian times with various indigenous groups inhabiting the region.
Today, Panama is known for its strategic location on the Panama Canal, one of the world's busiest waterways, facilitating global trade between the Atlantic and Pacific Oceans.
With a population of over 4.3 million, Panama City is the capital and largest city, offering a mix of modern skyscrapers and colonial architecture.
Mulino stated that the deal was set to expire in two to three years but did not elaborate. ‘Yesterday’s announcement by President @JoseRaulMulino that Panama will allow its participation in the CCP‘s belt and road initiative to expire is a great step forward for US-Panama relations, a free Panama Canal, and another example of @POTUS leadership to protect our national security and deliver prosperity for the American people, ‘ Rubio posted on X after departing the country.
Experts Weigh In
Professor Yanzhong Huang, a senior fellow at the New York-based Council on Foreign Relations thinktank, said that Panama’s ‘significant‘ decision to exit the BRI showed an early win for the new Trump administration’s ‘brinkmanship diplomacy.’ However, he noted that it wouldn’t necessarily be replicated easily.
‘The US now seems to be increasing its focus on its backyard, Latin America, these countries that still need to rely on US support and trade,’ Huang said. ‘But I’m not sure that the US could use similar influence to force an Asian country, for example, to make similar concessions. It’s unlikely given China is already the most influential actor in that region.’
Background on the Belt and Road Initiative
Panama was the first Latin American country to officially endorse the BRI in November 2017, five months after switching diplomatic ties from Taiwan to China. China rejects western criticism of the initiative, saying more than 100 countries have joined it, and that it has boosted global development with new ports, bridges, railways, and other projects.
Nonetheless, it has faced controversy, with some partner nations criticizing the high cost of projects and struggling to repay loans. Italy withdrew from the initiative in 2023 amid US pressure over concerns about Beijing’s economic reach.
US Concerns Over Chinese Companies’ Operations
The US state department said on Sunday that Rubio delivered a message from Trump that China’s presence near the Panama Canal was a threat to the canal and a violation of the US-Panama treaty. After talks with Rubio, Mulino signalled a willingness to review the 25-year concession to Hong Kong-based CK Hutchison Holdings, renewed in 2021 for the operation of two entrance ports.
The contract has been targeted by US lawmakers and the government as an example of China’s expansion in Panama, which they say goes against a neutrality treaty signed by both countries in 1977. Rubio called Mulino a friend to the US, and Panama a strong partner and ally. He said his visit had achieved ‘potentially really good things.‘
‘We don’t want to have a hostile or negative relationship with Panama,’ Rubio said.
Ryan Berg, director of the Americas Program at Washington‘s Center for Strategic and International Studies, said that the audit could provide a way to unwind the concessions if it shows the deals were marred by corruption.
