BEIJING — On Friday, China criticized what it referred to as U.S. “coercion” following Panama’s decision not to extend an important infrastructure agreement with Beijing amidst threats from Washington regarding the Panama Canal.

During a press conference, Foreign Ministry spokesperson Lin Jian expressed China’s strong opposition to U.S. efforts to undermine the Belt and Road Initiative through pressure tactics. This initiative, championed by President Xi Jinping, aims to strengthen China’s connections with various countries by creating extensive networks of roads, railways, airports, and other essential infrastructure projects. While the initiative has successfully completed significant projects, it has also faced scrutiny over potential debt implications and environmental concerns.

Panama’s choice to distance itself from the agreement is seen as a concession to the U.S., especially after U.S. Secretary of State Marco Rubio cautioned Panamanian president José Raúl Mulino during a recent meeting. Rubio indicated that the Panamanian government needed to curtail what President Donald Trump views as undue Chinese influence over the canal or risk facing U.S. repercussions.

Despite this external pressure, Mulino has publicly rebuffed the U.S. government’s insistence on reopening discussions about ownership of the critical waterway, which plays a central role in international trade.

Nevertheless, there are speculations that Panama might consider a compromise that would result in canal operations being removed from the control of Hutchison Ports, a Hong Kong-based company that currently manages it under a 25-year no-bid extension. An investigation into the appropriateness of that arrangement is underway and may lead to a re-bidding procedure.

The Panama Canal has also been impacted by drought, leading to lower water levels that have hindered transit, which has drawn more complaints from Trump. However, these transit delays are not related to China’s involvement in the region.

Lin highlighted that the Belt and Road Initiative has engaged participation from over 150 countries and has yielded beneficial outcomes for both Panama and China, although he did not cite specific instances. He urged Panama to consider the broader context of its relationship with China and the long-term interests of both nations while resisting external pressures to make decisions that are in its best interests.