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Title Panama Canal Conundrum US Warns Panama of Action Against China's Growing Influence

As tensions escalate between the United States, China, and Panama over control of the Panama Canal, US Secretary of State Marco Rubio has issued a stark warning to Panama reduce Chinese influence or face consequences. On his first trip overseas as the top US diplomat, Rubio visited the canal and met with Panamanian President Jose Raul Mulino to discuss concerns.

Background
In 1999, the United States handed over control of the Panama Canal under a treaty that allowed for its administration by the Panama Canal Authority. However, China has been increasingly involved in surrounding infrastructure projects, raising US concerns about potential influence and control over the canal.

Rubio's Warning
During private meetings with Mulino, Rubio reportedly informed him that President Donald Trump had determined that Panama had violated terms of the treaty, and Chinese influence was unacceptable. Rubio emphasized that absent immediate changes, the United States would need to take measures necessary to protect its rights under the treaty.

Stakes
As nearly 75 percent of cargo passing through the canal comes from the US, with China being the second-largest contributor, Trump and Rubio argue that China's influence could potentially shut down the canal in a conflict, causing catastrophic consequences for the US.

Panama's Response
Mulino painted a more optimistic picture of his meeting with Rubio, emphasizing Panama's commitment to cooperation and sovereignty over the canal. He proposed technical-level talks with Washington to clear up concerns and announced that Panama would not be renewing its participation in China's Belt and Road project.

Future Ahead
As tensions continue to rise, it remains to be seen how this situation will unfold. Will Panama make concessions to reduce Chinese influence, or will the US take action to protect its interests? One thing is certain – the future of international cooperation and global trade hangs in the balance.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

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