Panama's relationship with China and the United States is heating up.

In a sudden turn of events, Panama has decided not to renew a major infrastructure deal with China, citing pressure from the United States to reduce Chinese influence over the Panama Canal, a critical pathway for global trade.

China, on the other hand, is not happy about this development. Beijing has accused the United States of using pressure tactics.

China's Belt and Road Initiative, a massive global project aimed at connecting countries through infrastructure, is at the heart of this controversy.

Panama's decision to walk away from the deal is seen as a victory for the United States, who has been urging Panama to limit Chinese involvement in the canal.

This is where things get interesting.

The U. S. Secretary of State Marco Rubio warned Panama's leader, José Raúl Mulino, that he needs to cut Chinese influence in the canal area. Otherwise, the United States might take the canal back.

Panama, however, isn't too keen on discussing this issue with the new U. S. government.

Despite this, some people believe that Panama might be willing to find a middle ground. This could involve taking operations away from Hutchison Ports, a Hong Kong-based company currently running the canal, after a 25-year contract that was extended without any bidding competition.

To make matters more complicated, water levels in the canal have dropped due to a drought, causing transit delays. While this is a problem, it has nothing to do with China's presence in the region.

China has bragged about the Belt and Road Initiative, saying it’s a big hit with over 150 countries participating. However, they haven't given any specifics about how it has benefited Panama and China.

Beijing wants Panama to think about the long-term benefits of their partnership and resist any interference from another country.

Panama's Canal Gambit: A Waterway Sandwiched Between Superpowers

Actions