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AFRICA, ASIA, ATLANTIC, BEIJING, CHINA, CHINA HARBOUR ENGINEERING COMPANY, FOREIGN INVESTMENT, HONG, HONG KONG - BASED HUTCHISON PORTS, HUT, INDUSTRY, JOSE RAUL MULINO, JOSÉ RAÚL MULINO, MEXICO, MULINO, NIGERIA, NORTH AMERICA, PANAMA CANAL, SOUTH CHINA SEA, TERRITORIAL DISPUTE, TRADE
Clara Montgomery
Panama Withdraws from China’s Belt and Road Initiative, Raising Questions Over Its Impact
Panama has officially exited China’s Belt and Road Initiative, with President Mulino questioning the value of the 2017 agreement. The withdrawal involves a 90-day notice from the Panamanian embassy in Beijing. Despite some past Chinese investments, the president has expressed skepticism about their benefits to Panama.
Panama has officially withdrawn from China’s Belt and Road Initiative as President José Raúl Mulino ordered embassy staff in Beijing to file a 90-day notice of cessation. In a press briefing, President Mulino expressed uncertainty regarding the motivations of those who endorsed the 2017 agreement, questioning its benefits for Panama. He emphasized his decision to step back from the initiative, stating, “This is a decision I have made.” The most significant action linked to China’s involvement has been a bridge tender awarded to China Harbour Engineering Company in 2018, while Hutchison Ports gained operational rights to two ports at the canal exits in 2021.
The Belt and Road Initiative, launched by China in 2013, aims to enhance global trade via infrastructure investments. Many countries worldwide have either embraced or questioned this strategy due to concerns over sovereignty and economic dependency. Panama’s engagement with this initiative began in 2017; however, recent decisions reflect a shift in their diplomatic and economic strategy, raising questions about the long-term benefits of foreign investments in critical national assets such as the Panama Canal.
The formal exit of Panama from the Belt and Road Initiative, as articulated by President Mulino, signifies a reevaluation of international partnerships and investments. It underscores concerns about the tangible gains derived from such agreements, particularly in light of the historical context of the Panama Canal’s operation. As nations reassess their foreign strategies, the implications of Panama’s withdrawal from the initiative could resonate beyond its borders, influencing similar considerations in other countries.
Original Source: www.scmp.com
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