Beijing — China on Friday lashed out at what it called U.S. “coercion” after Panama declined to renew a key infrastructure agreement with Beijing following Washington’s threat to take back the Panama Canal. Foreign Ministry spokesperson Lin Jian said at a briefing that China “firmly opposes the U.S. smearing and undermining the Belt and Road cooperation through means of pressure and coercion.”
The Belt and Road Initiative is President Xi Jinping’s signature foreign police drive to bind China closer to countries in the region and beyond by building roads, railways, airports, power plants and other infrastructure.
The program has completed some major projects but also raised concerns about debt and environmental impact.
Panama’s decision to walk away from it was seen as a concession to the U.S. over the canal after U.S. Secretary of State Marco Rubio warned Panamanian leader José Raúl Mulino on Sunday that Panama must immediately reduce what President Trump says is Chinese influence over the canal area or face potential retaliation from the United States.
Mulino has rejected pressure from the new U.S. government to discuss ownership of a waterway that is vital to global trade. On Wednesday, Mulino vehemently rejected a claim issued the previous day by the U.S. State Department that a deal had been reached for U.S. military vessels to traverse the canal free of charge. Mulino said the U.S. statement was “based on a falsity. And that’s intolerable.”
Later Thursday, asked about Mulino’s remarks, Rubio said he wasn’t confused about his discussions with leaders in Panama, adding: “I respect very much the fact that Panama has a process of laws and procedures that they need to follow.”
“The United States has a treaty obligation to protect the Panama Canal if it comes under attack,” Rubio said. “That treaty obligation would have to be enforced by the armed forces of the United States, particularly the U.S. Navy. I find it absurd that we would have to pay fees to transit a zone that we are obligated to protect in a time of conflict.”
Despite Mulino’s firm stance on Thursday, some believe Panama may be open to a compromise under which canal operations on both sides are taken away from the Hong Kong-based Hutchison Ports company, which was given a 25-year no-bid extension to run them. An audit into the suitability of that extension is already underway in Panama and could lead to a rebidding process.
A drop in water levels in the canal due to drought has slowed transit through the canal, raising further complaints from Mr. Trump, although the delays appear to have nothing to do with China.
Lin said the Belt and Road Initiative had brought “active participation” from over 150 countries and that it has brought “fruitful results” to Panama and China, but gave no examples.
“We hope Panama will bear in mind the general picture of bilateral relationship and the long-term interests of both peoples, resist external interference, and make the right decision,” Lin said.