Panama appears to have been sandwiched between the United States and China, as Beijing has summoned Panama’s ambassador for pulling out of the Belt and Road Initiative (BRI). Panama decided to pull out of the multi-billion-dollar China-led infrastructural project following US President Donald Trump’s threats to take back the Panama Canal. According to the state-run Xinhua news agency, China summoned Ambassador Miguel Humberto Lecaro Barcenas on Friday over Panama’s decision to not renew the Memorandum of Understanding (MOU) on cooperation with China on the BRI.
China expresses deep regret over Panama’s decision
The Chinese side expressed deep regret after Panama announced the termination of the MOU on the Chinese project. In a statement, China’s Assistant Foreign Minister Zhao Zhiyuan said, “Under the framework of the BRI, pragmatic cooperation between China and Panama has rapidly developed across various sectors and achieved a series of fruitful results, bringing tangible benefits to Panama and its people.”
Zhao underscored that more than 150 countries actively participate in the BRI, as he highlighted that the achievements of the project benefit the people of various nations, including Panama.
The BRI project has remained subject to criticism in recent times, as it is dubbed a ‘debt trap’ with many countries struggling to pay back Chinese loans.
“Any attempts to reverse the course on the BRI and go against the expectations of the Chinese and Panamanian people do not align with the vital interests of Panama,” Zhao said. The Chinese minister said that Beijing opposes the actions of the United States that undermine the China-Panama relations and discredit and undermine the cooperation under the BRI through pressure and threats.
US warns Panama
Earlier, US Secretary of State Marco Rubio, during his Panama visit, warned Panama that the US would take steps if it did not take immediate steps to end China’s influence and control over the Panama Canal.
Following Ruibo’s warning, Panama President José Raúl Mulino announced Panama’s exit from the BRI project. “I do not know what was the intention of those who signed this agreement with China was. What has it brought to Panama all these years?” he was quoted as saying by the Hong Kong-based South China Morning Post.
(With inputs from AP)
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