Beijing Reacts To Panama Setbacks

(Matthew Fulco – The Jamestown Foundation) Since 2025, Panama has pushed back against the People’s Republic of China’s (PRC) influence in its region by leaving the One Belt One Road (OBOR) initiative and cancelling Hong Kong firm CK Hutchinson’s port concessions on the Panama Canal. In the meantime, Panama has deepened ties with the United States. Beijing has responded aggressively to Panama’s about-face by lashing out against the Panamanian Supreme Court’s ruling canceling the concession, diplomatically threatening Panama, and detaining Panamanian-flagged vessels in Chinese ports. Panama’s shift away from the PRC is in part due to Beijing’s faltering commitment to invest in the nation through the OBOR and United States (U.S.) recommitment to the Western Hemisphere since 2025. Both Beijing and Panama City have signaled willingness to deescalate the situation. For Beijing, it risks further alienating Latin American countries if the region deems the United States to be an economically beneficial partner in the future. – Beijing Reacts To Panama Setbacks – Jamestown