Panama Exits China’s Belt and Road Amid U.S. Tensions

China criticized the U.S. for "smearing and sabotage" of its Belt and Road Initiative (BRI) in Panama, following the South American nation’s decision to withdraw from the program. Foreign Ministry spokesperson Lin Jian expressed deep regret over Panama’s move, urging the country to prioritize long-term bilateral interests and resist external interference.

Panama officially submitted its exit document, President Jose Raul Mulino announced Thursday, shortly after meeting U.S. Secretary of State Marco Rubio. However, Mulino denied U.S. pressure played a role in the decision.

China launched the BRI in 2013, with over 150 nations, including more than 20 from Latin America, participating in infrastructure and trade projects. Panama joined in 2017 after switching diplomatic ties from Taiwan to China, becoming the first Latin American nation to enter the initiative.

The U.S. has long voiced concerns over China's influence in Panama, with former President Donald Trump claiming Beijing had gained control over the Panama Canal, an assertion both nations refute. As tensions rise between the U.S. and China, Panama’s withdrawal highlights the ongoing geopolitical struggle over global trade influence.