Panama becomes first Latin American Nation to exit China's belt and road initiative, sparks US-China Tensions
August 3, 2026
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Panama becomes first Latin American Nation to exit China’s belt and road initiative, sparks US-China Tensions

Panama has become the first Latin American nation to exit China's Belt and Road Initiative, a move praised by the US but denied as being influenced by external pressure. In response, China accused Washington of a "Cold War mentality" and attempting to undermine its global infrastructure ambitions

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Feb 9, 2025, 10:00 am IST
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Panama has become the first Latin American nation to exit Beijing’s Belt and Road Initiative, marking a significant shift in its foreign policy and relationship with China’s global infrastructure ambitions.

In this response, China has accused Washington of the “Cold War mentality” in Latin America. According to Al Jazeera, a spokesperson for China’s Ministry of Foreign Affairs criticised the United States on February 7 for attempting to undermine the global infrastructure initiative.

Lin Jian, the Chinese spokesperson, stated that Beijing “strongly opposes the US using pressure and coercion to discredit and sabotage Belt and Road cooperation.” He further accused the US of exposing its “hegemonic nature” through such attacks, Al Jazeera reported.

Commenting on Marco Rubio’s recent visit to the region, Lin argued that the US Secretary of State’s remarks unjustly blamed China, aimed to create divisions between China and Latin American nations, interfered in China’s internal matters, and attacked its legitimate rights and interests.

Al Jazeera reported that in 2017, Panama became the first country in Latin America to officially join China’s vast infrastructure initiative, which is a key part of President Xi Jinping’s strategy to enhance China’s global influence.

However, on February 6, Panama’s President Jose Raul Mulino announced that the country has formally notified China of its decision to withdraw from the Belt and Road Initiative (BRI). This move came after a visit by US Secretary of State Marco Rubio, who also toured the Panama Canal.

Former President Donald Trump had frequently accused Panama of surrendering control of the crucial waterway to China, although both countries denied these claims. Mulino clarified that Panama’s decision to leave the BRI was not influenced by US pressure.

Rubio, who had previously threatened actions against Panama unless it reduced Chinese influence on the canal, praised the decision as a “great step forward” in US-Panama relations.

In response, Beijing reaffirmed its support for Panama’s sovereignty over the canal, with spokesperson Lin Jian expressing hope that Panama would make decisions based on long-term bilateral interests and resist external interference.

(with inputs from ANI)

Topics: PanamaUS SecretaryUS - China TensionsUS-Panama relationsBeijingLatin America
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