China Criticizes US ‘coercion’ after Panama drops deal with Beijing

Robert Besser
15 Feb 2025, 02:08 GMT+10

Last week, China criticized the U.S. after Panama decided not to renew a vital infrastructure deal with Beijing
China accused the U.S. of using threats and pressure to influence Panama’s decision, especially after Washington warned it might take back control of the Panama Canal
Chinese Foreign Ministry spokesperson Lin Jian said China firmly opposes the U.S. using pressure to damage its Belt and Road Initiative

BEIJING, China: Last week, China criticized the U.S. after Panama decided not to renew a vital infrastructure deal with Beijing.

China accused the U.S. of using threats and pressure to influence Panama's decision, especially after Washington warned it might take back control of the Panama Canal.

Chinese Foreign Ministry spokesperson Lin Jian said China firmly opposes the U.S. using pressure to damage its Belt and Road Initiative.

This program, led by President Xi Jinping, builds infrastructure like roads, railways, and power plants in different countries. While it has helped some nations, it has also raised concerns about debt and environmental damage.

Panama's decision was seen as a way to ease tensions with the U.S. after U.S. Secretary of State Marco Rubio told Panamanian President Jose Raul Mulino that China's influence over the canal must be reduced or the U.S. might take action. However, Mulino has refused to discuss ownership of the canal, which is crucial for global trade.

Still, some believe Panama may consider removing Hong Kong-based Hutchison Ports from operating canal terminals. The company was given a 25-year contract without competition, and a review is now underway, which could lead to a new bidding process.

Meanwhile, a drought has lowered water levels in the canal, causing shipping delays. Former U.S. President Donald Trump has complained about the slowdown, but it is not related to China.

China says its Belt and Road Initiative has benefited over 150 countries, including Panama, but did not give specific examples. Lin Jian urged Panama to resist outside pressure and make decisions based on long-term interests.