Updated 22:12 IST, February 3rd 2025
'Won't Renew': Panama Withdraws From China's Belt And Road Deal Amid US Pressure
Panama's President announced the country 'will not renew' its participation in China's Belt and Road Initiative after meeting US Secretary of State.

Panama City: José Raúl Mulino, President of Panama has announced that the Country "will not renew" its participation in China’s Belt and Road Initiative (BRI) after a meeting US Secretary of State Marco Rubio on Sunday, this comes as a signal of shift in its diplomatic alignment under the pressure of US influence.
According to a report, President José Raúl Mulino said that Panama "will not renew" the broad agreement with China that had previously led to increased Chinese investment in the country as part of China’s Belt and Road initiative during past administrations.
Mulino said that the agreement is up for renewal in one to two years, and his government will consider terminating it sooner. "We'll study the possibility of terminating it early," he said.
Withdrawal Comes After Rubio's Visit to Panama
The decision to withdraw from the BRI comes in response to increasing US concerns about China’s expanding influence in the region, especially near the Panama Canal.
After meeting with Mulino, Rubio said that the United States "cannot, and will not, allow the Chinese Communist Party to continue with its effective and growing control over the Panama Canal area."
Marco Rubio began his first foreign trip as America’s top diplomat with a meeting with Panama's President José Raúl Mulino on Sunday. This marks the opening of a trip aimed at strengthening relations in the face of increased pressure from President Donald Trump on the US' neighbors and allies.
China's Belt and Road Initiative in Panama
China has made significant influence in Panama through investments in crucial infrastructure, especially with the operation of two major ports near the Panama Canal entrances by CK Hutchison Holdings, a Hong Kong-based company. The company’s 25-year concession, which was renewed in 2021, has raised concerns among US lawmakers who fear that China’s involvement could jeopardize the canal’s neutrality.
In 2017, China achieved a significant victory when Panama broke diplomatic ties with Taiwan, the self-governing island that China claims as its territory, and officially recognized Beijing instead, with Panama—previously one of the few countries to recognize Taiwan as a sovereign state—also joining China's Belt and Road Initiative under the previous administration.
China's Belt and Road Initiative, launched in 2013, has served as a key tool for Beijing to broaden its global economic influence by funding infrastructure projects across various countries.
Published 15:42 IST, February 3rd 2025