Panama has announced its withdrawal from China's "Belt and Road" initiative.

The government of Panama will not extend the memorandum with China regarding the country's participation in the Chinese global initiative "One Belt, One Road." This was announced by the country's president, José Raúl Mulino, following talks with U.S. Secretary of State Marco Rubio, as reported by CNN and UNN.

Details

He described the meeting with the Secretary of State as "heartfelt and respectful," emphasizing that the American side does not question the country's sovereignty over the Panama Canal.

According to him, the parties thoroughly discussed the issue of Chinese presence in the Panama Canal area. The government is currently conducting an audit of the ports near the canal that are managed by Chinese companies.

He added that Panama will also explore the possibility of exiting the Chinese project before the agreement's expiration date, which is extended every three years.

Panama severed long-standing diplomatic relations with Taiwan in favor of China in 2017 and joined its global infrastructure initiative "One Belt, One Road" at that time. This decision sparked a wave of criticism from the U.S. due to the risks of Chinese control over the operation of the Panama Canal, which is critical for global trade.

Reminder

U.S. Secretary of State Marco Rubio warned Panama about the unacceptability of Chinese control over the Panama Canal. The U.S. threatens to take action if the situation does not change immediately.