Panama announces its withdrawal from the Chinese initiative “One Belt, One Road”

The Panamanian government will not extend the memorandum with China on the country's participation in the Chinese global initiative "One Belt, One Road". This was stated by President Jose Raul Mulino after talks with U.S. Secretary of State Marco Rubio, CNN reports, UNN writes.

Details

He called the meeting with the head of the State Department "cordial and respectful," emphasizing that the American side did not question the country's sovereignty over the Panama Canal.

I believe that this visit opens the door to building a new relationship with the United States... and in particular, to increasing American investment in Panama,

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

I have made an important decision and I am informing you about it. My government will not extend the 2017 memorandum of understanding on the country's participation in the Belt and Road Initiative,

He added that Panama will also explore the possibility of withdrawing from the Chinese project before the expiration date of the agreement, which is renewed every three years.

Panama severed its longstanding diplomatic relations with Taiwan in favor of China in 2017 and joined its global infrastructure initiative "One Belt, One Road" at the same time. This caused a wave of criticism from the United States because of the risks of China's control over the functioning of the Panama Canal, which is critical for world trade.

Recall

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