China’s expanding footprint in Latin America is expected to be high on the agenda when US Secretary of State Marco Rubio visits Panama next week on his first overseas trip since taking office, according to observers.
Rubio, who took office this week, is reportedly preparing to travel to Panama as part of a five-nation trip that is expected to also include Guatemala, El Salvador, Costa Rica and the Dominican Republic.
Analysts cautioned Beijing not to overreact to any efforts by the Trump administration to “reclaim” the canal but to be alert to potential impacts such action could have on trade.
Wu Xinbo, dean of the Institute of International Studies at Fudan University in Shanghai, said that if the US were to regain control of the canal, it would pose “very big constraints” on China’s shipping and the country’s economic cooperation with Panama and Latin America.
“That would be very unfavourable for us,” he said.