Panama appears to have bowed to Donald Trump’s aggressive style of diplomacy by ditching its involvement in China’s Belt and Road initiative.

Panama’s president reiterated on Sunday that Panama’s sovereignty over the Panama Canal is not up for debate, saying that during talks with US Secretary of State Marco Rubio that he had addressed the United States’ concerns over China’s presence around the vital waterway.

The Panamanian government had signed the agreement in 2017. Rubio had told President Mulino to reduce Chinese influence around the canal or face consequences

Panama has withdrawn from the Chinese "Belt and Road Initiative" after talks with the USA. President José Raúl Mulino announced the decision following a meeting with Secretary of State Marco Rubio—the project aimed to develop infrastructure and trade.

Panama has decided to step away from a major global project led by China. The country’s president, José Raúl Mulino, announced that it will not renew its deal with China’s Belt and Road Initiative (BRI).

Panama has decided not to renew its participation in China’s Belt and Road Initiative (BRI), making it the first Latin American nation to leave the programme. President José Raúl Mulino stated that his administration would assess whether an early termination is possible.