Path of economic rapprochement between Panama and China: alarm bells ringing in the White House (2017-2022)

Abstract

China has in Panama one of its main strategic investment objectives in the region. This is due to the position of the Interoceanic Canal and the Colon Free Trade Zone. Both cases constitute pillars of great importance for China's commercial expansion in the area and the New Silk Road initiative. Although the People's Republic of China has maintained strong trade and economic relations with Panama during the present century, as of 2017, with the rupture of diplomatic relations between the Isthmian nation and Taiwan, such ties became even closer. For its part, Panama, despite being in a US sphere of influence, has opted to maintain close relations with both countries without generating direct conflict with them: it is strengthening trade and economic ties with China, ratifying its position as a strategic ally of the United States in the region.