Panama is paying a price for stepping away from Beijing:
Recent reporting indicates that Chinese authorities have sharply increased inspections and detentions of Panamanian-flagged ships after Panama’s Supreme Court struck down the concessions held by Hong Kong-based CK Hutchison at the Balboa and Cristobal container terminals. Beijing says the measures are based on safety concerns. Panamanian officials see them as retaliation for a decision that weakened China’s commercial position at both ends of the Panama Canal.
Panama is one battle in a much larger contest over who will shape the Western Hemisphere. For more than two decades, China expanded its reach by financing, building, and operating ports, railways, electrical grids, telecommunications systems, logistics hubs, and energy projects across Latin America. Those investments created influence that extends well beyond commerce.
[…]
Panama recognized the People’s Republic of China in 2017, ended diplomatic relations with Taiwan, and joined the Belt and Road Initiative the following year. Chinese firms pursued the proposed Panama City-David railway, the Fourth Bridge over the Panama Canal, the Amador Cruise Terminal, and other large projects.
The greatest concern centered on the Balboa and Cristobal terminals at the Pacific and Atlantic entrances to the canal, operated by Panama Ports Company, a subsidiary of CK Hutchison. China did not own or operate the canal, but companies tied to Beijing had gained influence over commercial infrastructure surrounding it.
[…]
Washington increasingly viewed Chinese influence surrounding the canal as a national security concern. It elevated the issue in discussions with Panama, encouraged greater American investment, and supported efforts that led CK Hutchison to agree to sell its controlling interest in the terminals to a U.S.-led consortium.
Panama also withdrew from China’s Belt and Road Initiative. When Chinese opposition delayed the proposed sale, Panama’s Supreme Court struck down the port concessions, clearing the way for new management.
China offers other countries real and substantial economic benefits. The US offers colonial subjugation, military intimidation, and exploitation and poverty.