Panama’s political landscape was jolted this week as President José Raúl Mulino publicly accused the United States of pressuring Panamanian officials to curtail the presence of Chinese companies in the country. The accusation, delivered during Mulino’s weekly press conference on October 16, 2025, has cast a spotlight on the growing tensions between Washington and Beijing as they vie for influence in Central America—and it’s placed the tiny but strategically vital nation of Panama right in the crosshairs.
"I do have that information, from several people, that there’s a female embassy official going around threatening to take away visas. That is not consistent with the good relationship I hope to maintain with the United States," Mulino told reporters, according to multiple news outlets including AP and India Today. He added, "They are free to grant and revoke visas from whomever they want, but not by threatening, ‘if you don’t do this, I’ll take your visa.’" The president did not name the official in question or present direct evidence, but his comments were clear: he believes U.S. embassy staff are using threats of visa revocation to sway Panamanian policy against Chinese business interests.
This is not the first time the issue has surfaced. Even before Mulino assumed office in January 2025, then-incoming U.S. President Donald Trump had made headlines by threatening to “take back” the Panama Canal, alleging that the interoceanic route was slipping under Beijing’s control. Since then, the Trump administration has made no secret of its desire to counter China’s growing footprint in the region. According to Al Jazeera and other sources, U.S. Secretary of State Marco Rubio visited Panama in February on his first foreign trip as the nation’s top diplomat, urging the Panamanian government to reduce China’s influence over the canal.
The Panama Canal, of course, is no ordinary waterway. Its importance to global trade is immense, and its location at the crossroads of the Americas makes it a perennial focal point for geopolitical maneuvering. The canal’s neutrality has long been a source of pride for Panama, and Mulino has repeatedly insisted that the country will maintain this stance. "Panama will maintain the canal’s neutrality," he stated, pushing back against suggestions that Chinese companies had undue influence over its operations.
Yet the facts on the ground tell a more complicated story. Since Panama formally established diplomatic relations with China in 2017, breaking ties with Taiwan, Chinese firms have won contracts for several high-profile infrastructure projects—including a cruise port and a new bridge over the canal. Mulino, however, has downplayed the scope of these contracts, saying, "The contracts that exist with Chinese companies on the part of the State are well known and very few, and they cannot be eliminated, no matter how much you are the United States." He added pointedly, "All I aspire to is respect. It would not occur to me to go to the state of California to talk about California’s problems or the United States’ problems within its territory."
For its part, the U.S. embassy in Panama has neither confirmed nor denied the allegations of threats. U.S. Ambassador Kevin Marino Cabrera defended the right to revoke visas, saying in a statement, "We revoke and deny visas in accordance with our laws and regulations, regardless of the individual’s profession or position in government." The ambassador also pointed out that, since September 2025, the State Department has implemented a new visa restriction policy targeting Central Americans who "intentionally act on behalf of the Chinese Communist Party." This policy, the U.S. says, is part of a broader effort to counter China’s influence in Central America and protect democratic institutions in the region.
Visa revocations have become a recurring theme in U.S. policy toward Panama and its neighbors. In June 2025, the Trump administration canceled the visa of former Panamanian president Martín Torrijos, along with other politicians and activists, after they criticized an agreement allowing the deployment of U.S. military personnel in Panama. The pattern extends beyond Panama’s borders: in April, former Costa Rican President and Nobel Peace Prize winner Oscar Arias revealed that the U.S. had canceled his visa; in July, Costa Rica’s Congress Vice President Vanessa Castro said her visa was revoked due to alleged contacts with the Chinese Communist Party.
The Trump administration’s approach has not been limited to officials with China ties. Earlier this month, according to India Today and Al Jazeera, the U.S. revoked the visas of six foreigners who, according to officials, had made derisive comments or made light of the assassination of conservative activist Charlie Kirk. These moves, combined with the new visa policy, have sent a clear message about the administration’s priorities in the region.
Mulino, for his part, has sought to keep Panama above the fray, insisting that the underlying conflict between the U.S. and China "doesn’t involve Panama." He has repeatedly argued that the country’s interests are best served by maintaining cordial relations with both superpowers, and by ensuring that the canal remains a neutral, non-aligned asset. But the reality is that Panama’s strategic location and economic importance make it nearly impossible to avoid being drawn into the tug-of-war between Washington and Beijing.
Behind the scenes, Panama has at times acquiesced to U.S. pressure. For example, after intense lobbying from Washington, Panama went along with efforts to push a Hong Kong-based company that operated ports on both ends of the canal to sell its concession to a U.S.-led consortium. Still, Panamanian officials have consistently denied that China exerts any undue influence over canal operations—a claim that U.S. officials, including Secretary of State Rubio, have publicly challenged.
As the diplomatic drama unfolds, ordinary Panamanians are left to wonder what the future holds. The canal remains a source of national pride, but also a potential flashpoint. Mulino’s public rebuke of U.S. tactics signals a desire to assert Panama’s sovereignty, even as external pressures mount. "They’re free to give and take a visa to anyone they want, but not threatening that if you don’t do something, I’ll take the visa," Mulino said, summing up his position and the delicate balancing act facing his administration.
With both superpowers watching closely, Panama’s next moves will be scrutinized not just in Washington and Beijing, but around the world. For now, President Mulino’s message is clear: Panama wants respect, neutrality, and the freedom to chart its own course—no matter how choppy the geopolitical waters may become.
