Panama withdrew from China’s Belt and Road Initiative amid increasing US pressure and security concerns over Chinese influence around the Panama Canal. The strategic isthmus, vital for global trade, had joined the BRI in 2017. Now, facing escalating diplomatic tensions, Panama’s leadership reviews Chinese business agreements to safeguard national interests.
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Panama withdrew from China’s Belt and Road Initiative (BRI).
BRI is a global infrastructure development strategy launched in 2013 by China.
It aims to enhance trade, economic connectivity, and cultural exchange by building a network of roads, railways, ports, and other infrastructure projects across Asia, Europe, Africa, and Latin America.
The BRI consists of two main components:
In 2017, Panama became the first Latin American country to officially join the BRI.
Recently, Panama withdrew from China’s Belt and Road Initiative (BRI) amid increasing US pressure and concerns over Chinese influence in the region.
The decision followed the US Secretary visit to Panama, where he emphasized US opposition to China’s role in the Panama Canal. Panama’s President denied direct US demands but signaled a review of agreements involving Chinese businesses.
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About Panama ● Panama occupies a strategic isthmus connecting North and South America. ● It is the southernmost country in Central America. ● It shares borders with: ○ Costa Rica to the west ○ Colombia to the east ○ Caribbean Sea to the north (Atlantic Ocean side) ○ Pacific Ocean to the south ● This region is dominated by the Cordillera Central mountain range. ● The highest point in Panama, Volcán Barú, is an inactive volcano. |
The Panama Canal is one of the world’s most important commercial waterways, reducing travel time between the Atlantic and Pacific Oceans.
It has become a point of contention due to US concerns over Chinese influence.
The US, which built and historically controlled the canal, views Chinese investments and operations in the region as a strategic threat to its national security and economic interests.
Donald Trump claimed that the US was being unfairly treated in its use of the Panama Canal, alleging that Panama charged US ships high fees and that Chinese soldiers were illegally operating the canal. He threatened a US takeover of the canal, emphasizing that its control should remain with Panama and not fall under Chinese influence.
The President of Panama denied claims of Chinese control over the canal. However, he signaled a review of agreements involving Chinese businesses, indicating a shift in Panama’s stance under US pressure.
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PRACTICE QUESTION Q. Consider the following statements 1. The Isthmus of Panama separates the Caribbean Sea from the Pacific Ocean. 2. Panama is situated between Colombia and Costa Rica. Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Answer: C Explanation: Statement 1 is correct: The Isthmus of Panama is a narrow strip of land that connects North and South America, lying between the Caribbean Sea and the Pacific Ocean. Statement 2 is correct: Panama is located in Central America, bordered by Colombia to the southeast and Costa Rica to the northwest. |
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