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. The move represents a win for Washington, which has argued that Beijing uses the scheme to cement its global influence.
Panama’s President José Raúl Mulino announced that his country’s broad agreement to contribute to the Chinese initiative will not be renewed and could be terminated early. He said the deal was set to expire in two to three years.
Rubio described Panama’s decision as a positive development for US-Panama relations, highlighting the importance of maintaining a free Panama Canal. The Belt and Road Initiative (BRI) has faced controversy, with some partner nations criticizing its high costs and struggling to repay loans.
The US has long expressed concerns about Chinese companies’ operations near the Panama Canal, including two state-owned firms building bridges over one of the canal’s entrances.
Rubio’s visit to Panama was seen as an effort to pressure the country into distancing itself from China. The US diplomat delivered a message from former President Donald Trump, stating that China’s presence in Panama is a threat to the canal and a violation of the US-Panama treaty.
Panama’s decision to exit the BRI has been hailed by some experts as an early win for the new Trump administration’s “brinkmanship diplomacy”. However, others argue that it won’t necessarily be replicated easily, given China’s dominant influence in the region.
Source: https://www.theguardian.com/world/2025/feb/04/marco-rubio-panama-china-us-relationship-infrastructure-plan