The diplomatic context between China and Panama and their agreements

n 2017, Panamanian President Juan Carlos Varela established official ties with the People’s Republic of China (PRC), deepening such diplomacy without disclosing why, exactly, his government had broken its long-standing relations with the Republic of China (Taiwan) in favor of those with the PRC, what commitments his government had made to the PRC, and how he planned to handle the PRC’s strategic interests. China’s objectives, however, are clear. Beijing knows the strategic value of relations with Panama, particularly through its multi-trillion-dollar Belt and Road Initiative (BRI). The Panamanian side, meanwhile, negotiated hastily in a process without consultation, leaving their country in a lurch. Accordingly, Panamanian now need to do the work—to evaluate Panama-PRC agreements, involve all relevant sectors, and move forward according to the country’s best interests. This study analyzes Chinese diplomacy with a focus on Latin America, as well as the content of the PRC’s 47 agreements with Panama, ultimately offering a path forward for Panama.