Panama is taking a big step back from China's global investment plan. The country decided not to renew a 2017 deal with China's "Belt and Road Initiative. " This decision came after Panama President José Raúl Mulino met with US Secretary of State Marco Rubio. In 2013, China began this initiative to invest heavily in foreign infrastructure. The initiative has been a big part of China's growing influence worldwide.

        Panama’s President José Raúl Mulino announced this change during a news conference on a Sunday.  This decision comes after the US President threatened to take control of the Panama Canal. The US President made a strong claim that American ships are being charged excessively to navigate the canal.  The US President also accused China of running the canal.  This is a critical point because the Panama Canal is vital for international shipping.

        The Panama Canal is a major waterway for global trade.  Despite Panama’s move away from China’s initiative, Panama still has full control over the canal. Panama is now looking for other options. The country is interested in having the US invest in its infrastructure. This could lead to a change in how the canal operates.  This shift in focus could also impact the relationship between Panama, China, and other countries.

        This news comes as Mexico also faces new challenges.  The US President recently announced a 25% tariff on Mexican goods.  This move comes after Mexico agreed to a 1 month pause.  This pause is in exchange for securing the border. But the situation is not stable yet.  This tariff will be a problem if the border security issue is not solved.

        During his visit to Panama, Rubio warned about China's influence over the canal. Rubio made it clear that the Chinese government's control over the canal is a threat.  This is because it goes against the treaty that keeps the canal neutral.  The treaty ensures that the canal remains open to all countries.  The Chinese Communist Party must make changes or else the US will take action.

        This recent announcement is seen as a victory for the United States.  The US is happy that Panama is moving away from China's initiative.  A senior US official said that this decision shows a "free Panama Canal. "  This move will help US-Panama relations.  It will also improve security for the US and Panama.  There was no comment from the White House or the National Security Council.

PANAMA CHINA

Panama Pulls Away from China’s Global Network

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