• US Secretary of State Marco Rubio has warned Panama regarding China's influence on the Panama Canal.
• Rubio's visit marks an escalation in US pressure on Latin American countries to distance themselves from China.
• Protests erupted in Panama during Rubio's visit, reflecting local frustrations with US interventionist rhetoric.
• Panama's President José Raúl Mulino reaffirmed the nation’s sovereignty over the canal and announced plans to withdraw from China's Belt and Road Initiative.

On February 2, 2025, during his inaugural trip abroad as Secretary of State, Marco Rubio held discussions with Panamanian President José Raúl Mulino, demanding immediate changes to address perceived threats from China's influence over the Panama Canal. Rubio explicitly indicated that the United States would take necessary measures to protect its rights under the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal if these demands were not met. As quoted by SCMP, he stated, “Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty.”

In response, Mulino defended Panama's sovereignty, asserting that ownership of the canal is non-negotiable. He emphasized this commitment despite pressure from President Donald Trump, who previously claimed that Chinese entities operate the canal, stating, “The canal is and will continue to be Panama’s” as reported by The Guardian. This meeting, however, was met with substantial public backlash, as local protests erupted in Panama City against Rubio's visit and Trump's demands, underscoring growing sentiments against perceived American imperialism.

During his visit, Rubio also pointed out concerns about the operation of the CK Hutchison Holdings company, which manages two significant ports at either end of the canal under a 25-year contract. Critics, including U.S. lawmakers, view this arrangement as a manifestation of China's expanding presence and a violation of the treaty signed in 1977. Following these discussions, Mulino announced that Panama would not renew its cooperation under China's Belt and Road Initiative, effectively signaling a strategic pivot towards the United States.

In the wake of growing tensions, China's ambassador to Panama condemned U.S. actions as aggressive and discursive, with SCMP reporting her claims of coercive diplomacy employed by the U.S. Rubio, however, framed Panama's decision to exit the Belt and Road Initiative as a significant victory for American interests and a reaffirmation of Panama’s close ties with the United States.

Rubio is set to continue his diplomatic tour across Latin America with stops in El Salvador, Costa Rica, Guatemala, and the Dominican Republic, aiming to strengthen U.S. relationships in the region while addressing persistent issues surrounding migration and international trade integrity.

For further reading on the implications of Rubio's visit and the evolving relations between the U.S., Panama, and China, access the full coverage from BBC, The Independent, and NY Times.