Panama the new flashpoint in China's growing presence in Latin America.

Pedro_P

A spat over the site of China’s embassy has underlined the strategic value of the canal – through which two-thirds of ships to or from the US pass.

Jutting four kilometres into the Pacific, the Amador causeway islands separate the concrete and glass skyline of Panama City from the entrance to the Panama Canal. Photograph: Danielho/Getty Images/iStockphoto
▼ Jutting four kilometres into the Pacific, the Amador causeway islands separate the concrete and glass skyline of Panama City from the soaring iron arch of the Bridge of the Americas– under which 40 cargo ships pass each day en route to or from the Panama Canal.
Linked to the mainland by a slender causeway, these strategic outcrops are home to a handful of derelict buildings once used to house US military personnel.
But they have become a new flashpoint in the global rivalry between Beijing and Washington, as the US struggles to develop a coherent strategy to deal with China’s rising  influence in Latin America.
China’s plans to build a new embassy on the islands were derailed after US officials pressured the government of Panama’s president, Juan Carlos Varela, to withdraw its offer of a four-hectare plot, according to senior Panamanian and diplomatic sources.
“Of course there was pushback from the US: they weren’t going to allow a huge Chinese flag next to the entrance to the canal,” a diplomatic source told the Guardian. “But local pressure was also important. Handing over that land to the Chinese would have been a hugely unpopular move by the Varela government.”
Panama’s government has insisted that the decision was based on security and environmental concerns.
But a previous plan to build a new Chinese embassy in the traditional diplomatic district of PanamaCity was also blocked by objections from Washington, and Beijing has now established a temporary mission in an office block.
The incident may prove to be a pyrrhic victory for Washington, however. This weekend, the Chinese premier, Xi Jinping, arrives in Panama for a visit aimed at cementing ties with the Central American nation.
It will be the first such visit by a senior Chinese figure since Panama cut diplomatic ties with Taiwan to open formal relations with Beijing in June 2017.
Since then, the two countries have signed 28 diplomatic and investment agreements, a $500m renminbi-denominated “Panda” bond is expected before the end of the year and Chinese contractors have won major contracts for a port, convention centre and a new bridge over the canal.
The growth of Chinese investment and influence in the country has been the source of growing unease in Washington. (▪ ▪ ▪)

► Please, read the full note/article here: Source