Panama withdraws from China’s Belt and Road Initiative

President José Raúl Molino announced on Thursday his country’s withdrawal from China’s Belt and Road Initiative, a move that comes days after he received US Secretary of State Marco Rubio, whose country seeks to limit Beijing’s influence over the Panama Canal.

The minister said during a press conference that the Panama Embassy in Beijing “presented the document” that includes “announcing the withdrawal from the agreement within the 90-day period” stipulated in the agreement signed between the two parties.

The Belt and Road Initiative, launched by Beijing to develop infrastructure and huge development projects, is the focus of the Chinese president’s strategy to increase his country’s influence abroad.

Beijing launched this initiative in 2013 with the aim of building infrastructure and developing sea, land and rail transport networks, especially in developing countries, by financing these huge projects, with the aim of linking Asia, Europe and Africa to China.

More than 100 countries have so far joined the initiative, which critics say saddles them with debt and prioritizes Chinese companies over local economies.