China has condemned what it calls “US coercion” after Panama declined to renew a key infrastructure agreement with Beijing. The decision comes after the US threatened to take back control of the Panama Canal, a vital waterway for global trade.
The Belt and Road Initiative (BRI) is China’s signature foreign policy drive, aiming to bind China closer to countries in the region and beyond through massive infrastructure projects. However, the program has raised concerns over debt and environmental impact.
US Secretary of State Marco Rubio warned Panamanian leader José Raúl Mulino that Panama must reduce Chinese influence over the canal or face potential US retaliation. Despite this, Mulino rejected pressure from the new US government to discuss ownership.
Some believe Panama may be open to a compromise where canal operations are separated from Hutchison Ports, a Hong Kong-based company with a 25-year no-bid extension. An audit into the suitability of this extension is underway and could lead to a rebidding process.
China’s Foreign Ministry spokesperson Lin Jian expressed opposition to what he described as “US coercion” saying it has brought “active participation” from over 150 countries and “fruitful results” to Panama and China.
Source: https://abcnews.go.com/Business/wireStory/china-lashes-us-coercion-after-panama-declines-renew-118561218