THE FINANCIAL EYE News Panama warned to cut ties with China at risk of severe consequences!
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Panama warned to cut ties with China at risk of severe consequences!

Panama warned to cut ties with China at risk of severe consequences!

In a pivotal diplomatic showdown, US Secretary of State Marco Rubio issued a stern warning to Panama’s President José Raúl Mulino concerning China’s influence over the Panama Canal. The United States is adamant about protecting its interests in the region, urging Panama to take action to curb Chinese control or face severe repercussions.

Here are the key points from this high-stakes confrontation:

  • Rubio’s meeting with Mulino in Panama City highlighted President Donald Trump’s concerns regarding China’s threat to the canal’s neutrality. The US views China’s growing influence over the waterway as a violation of the treaty that ensures its neutrality.
  • Panama has vehemently denied accusations of Chinese involvement in operating the canal, emphasizing that the waterway belongs solely to Panama, not subject to foreign control.
  • The US has raised red flags about Chinese control of key ports at both ends of the canal managed by Hutchison Ports, renewing long concessions without a competitive bidding process for another 25 years, sparking concerns about their dominance in the region.

  • Mulino responded to US apprehensions by initiating an audit of the port concessions, indicating a willingness to address American concerns regarding Chinese influence. However, it remains unclear if canceling these concessions would satisfy Trump’s demands to reclaim the canal.

In a symbolic move to appease the US, Panama announced that it would not renew its participation in China’s Belt and Road infrastructure initiative. This decision underscores the delicate balance Panama must strike between maintaining global partnerships and safeguarding its sovereignty.

Amidst these diplomatic tensions, Rubio commended Panama’s efforts to tackle illegal migration and emphasized the importance of creating a fair playing field for US businesses. The decrease in illegal migration through the Darién jungle, a critical route for migrants towards the US, demonstrates the effectiveness of cooperative measures between the US and Panama.

As this geopolitical drama unfolds, it is clear that the future of the Panama Canal remains a contentious issue. The intricate web of power dynamics and international interests at play underscores the importance of maintaining equilibrium in a region of strategic importance. Balancing sovereignty, commercial interests, and global alliances will be crucial in navigating the complex waters of international relations.

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