Current Affairs - International - Discussion

Panama has announced its withdrawal from China’s Belt and Road Initiative (BRI) under President Jose Raúl Mulino. This decision reflects a geopolitical shift influenced by U.S. concerns over China’s growing involvement in Panama’s infrastructure, particularly near the strategic Panama Canal. Initially, Panama joined the BRI in 2017 to enhance trade and connectivity, allowing Chinese firms to undertake major projects. However, increasing U.S. pressure and concerns over national sovereignty led to the decision to exit the initiative, signalling a re-evaluation of Chinese investments in the country while strengthening ties with the United States.