Rubio Lands Critical Anti-China Victory Abroad

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Panama has delivered a major geopolitical message by choosing not to renew its participation in China’s Belt and Road Initiative. The decision, announced by Panamanian President Jose Raúl Mulino after a meeting with U.S. Secretary of State Marco Rubio, underscores the mounting global tension surrounding China’s expanding influence—and the strategic interests of the United States in ensuring that the Panama Canal remains free from outside control.

China’s Belt and Road Initiative has been a powerful tool for Beijing, giving it an outsized influence over infrastructure and trade networks across the globe. But Panama’s decision marks a significant win for the U.S., particularly for former President Donald Trump, who had long voiced concerns about Chinese involvement near the canal. His stance wasn’t mere rhetoric; back in December 2024, Trump made it clear that the canal’s control is a red line, warning on Truth Social that the U.S. would not allow China to exploit what was once a cornerstone of American engineering and geopolitical strategy


Trump’s warning came after years of growing concern. China’s influence in the region surged when its Landbridge Group bought Panama’s largest Atlantic port in 2016, and when Panama granted a 25-year port contract to Hong Kong-based Hutchison Ports in 2021. These moves worried U.S. officials, who saw them as critical footholds that could give Beijing a strategic advantage in global trade.

During his visit, Secretary Rubio left no room for ambiguity. He bluntly stated that the level of Chinese involvement was “unacceptable” and warned Panama’s leadership of potential consequences if corrective action wasn’t taken. The State Department backed him up, suggesting that China’s current presence likely violates the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.

Panama’s decision to distance itself from China comes at a delicate time. While President Mulino described his discussions with Rubio as “positive,” he also reinforced that the canal remains firmly under Panamanian control, stressing that it’s neither a concession nor a gift from the U.S. However, this may not be enough to satisfy Trump, who has hinted at the possibility of reclaiming the canal should Chinese influence remain a threat.

What happens next could redefine regional dynamics. An ongoing audit of the 25-year port agreement may lead to a rebidding process, potentially cutting off a key Chinese stronghold. Still, the long-term outcome depends on how both Panama and the U.S. navigate their shared but occasionally tense history.

For now, this announcement signals a key win for Washington, showcasing how persistent diplomatic pressure and strategic maneuvering can yield results in the ongoing tug-of-war between global powers. But as history often shows, control over such a vital artery of world trade is rarely a settled matter.

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