Overview

• Panama announced it will not renew its participation in China’s Belt and Road Initiative and is exploring an early exit from the agreement.
• The decision follows U.S. Secretary of State Marco Rubio’s visit, during which he raised concerns about Chinese influence in the Panama Canal region.
• Rubio praised Panama’s move as a positive step for U.S.-Panama relations and a measure to address perceived security threats posed by China’s presence.
• The U.S. has voiced concerns about Chinese state-owned companies operating near the canal, citing potential risks to canal neutrality and security.
• Panama has initiated audits of Chinese-operated ports and signaled openness to further U.S. demands, including possible concessions on canal transit fees for U.S. military vessels.