China Criticizes U.S. "Coercion" as Panama Ends Key Infrastructure Deal

Beijing — In a move that has sparked tensions between global powers, China expressed strong disapproval towards the United States on Friday. This comes after Panama chose not to renew a crucial infrastructure agreement with Beijing, a decision made amidst U.S. threats to reclaim control of the Panama Canal. Lin Jian, spokesperson for China's Foreign Ministry, emphasized at a press briefing China's stance against U.S. "coercion" aimed at hindering the Belt and Road Initiative.

The Belt and Road Initiative, a hallmark of President Xi Jinping's foreign policy, aims to strengthen ties with regional and global partners through extensive infrastructure projects, including roads, railways, and power facilities. Though several significant developments have been completed, the initiative has faced scrutiny for potential debt burdens and environmental concerns.

The reluctance of Panama to continue the deal is viewed as a gesture towards Washington, following U.S. Secretary of State Marco Rubio's caution to Panamanian President José Raúl Mulino regarding the reduction of Chinese influence around the canal. President Trump had voiced concerns over the strategic waterway.

President Mulino, however, stood firm against U.S. pressure, refusing to discuss the canal's ownership. He dismissed U.S. claims of an agreement allowing free passage to American warships as false, emphasizing, "that's intolerable."

When prompted about these developments, Rubio conceded the complexity of Panama's legal procedures, acknowledging, "I respect very much the fact that Panama has a process of laws and procedures that they need to follow." He further noted the U.S.'s treaty obligations, explaining, "The United States has a treaty obligation to protect the Panama Canal if it comes under attack," highlighting the absurdity of having to pay fees for transit during conflicts.

While Mulino's position remains unchanged, discussions about potential changes in canal operations are circulating, particularly concerning the Hong Kong-based Hutchison Ports. An audit is underway to review the 25-year extension granted to the company, which might result in a new bidding process.

The canal is also facing operational challenges due to a drought-induced drop in water levels, leading to delays. These issues are unrelated to China's influence, despite complaints by President Trump.

Lin Jian reaffirmed the positive impact of the Belt and Road Initiative, citing "active participation" by over 150 countries and "fruitful results" for Panama and China. He urged Panama to "resist external interference" and maintain a focus on mutual long-term benefits, despite current tensions.