Panama’s President Says Nation Will End Major Economic Deal With China After Rubio Visit

Panamanian President José Raúl Mulino said on Sunday afternoon that his country will be withdrawing from communist China’s predatory Belt and Road Initiative after meeting with Secretary of State Marco Rubio.

Rubio’s trip comes as President Donald Trump has signaled that he is willing to use military power to retake control of the Panama Canal if the country does not regain complete control over the operations of the canal from China.

“One important thing, which is a decision I made and communicated to him, is that the 2017 memorandum of understanding on the Silk Road, part of the Belt and Road Initiative, will not be renewed by my government,” Mulino said. “That is a fact.”

“We are going to study the possibility of whether it can be ended earlier or not,” he continued. “I think it is up for renewal in one or two years, because it’s every three.”

“So that initiative which was signed will not be renewed by my government,” he added.

NEW: After meeting with @SecRubio today, Panama’s president announced the country will not be renewing its memo with China on its Belt and Road Initiative.

Panama will also look into ending the agreement earlier than the set end date. pic.twitter.com/g7WF0w9WhT

— Kassy Akiva (@KassyAkiva) February 2, 2025

Rubio thanked Mulino for his support of the program to repatriate illegal immigrants, which has reduced illegal migration through the Darien Gap.

The two leaders also spoke about improving the playing field for fair competition by U.S. businesses, and Mulino’s support for a democratic, free Venezuela.

“Secretary Rubio expressed his gratitude for the productive discussion and underscored the United States’ dedication to making both nations safer, stronger, and more prosperous,” the statement added. “He noted this meeting marks an important step in reinvigorating the strategic relationship between the United States and Panama, in line with President Trump’s vision.”

Kassy Akiva contributed to this report.

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