“We trust that Panamanians Understand who their True Friend is” says the Chinese Ambassador

Xu Xueyuan, Chinese ambassador to Panama on her Huawei Computer. “The establishment of diplomatic relations between China and Panama enjoyed a broad social base… Any action that damages these ties will face the unanimous condemnation of the Panamanian people.”

June 13 marks the 8th anniversary of the establishment of diplomatic relations between China and Panama. China-Panama relations have experienced ups and downs over the past eight years, but it is even more crucial to recognize the constant factors that sustain China-Panama relations.  First, development is a common priority for both countries. China is moving resolutely forward in modernization to achieve the great revitalization of the Chinese nation; Panama has its own national development goals, with a pluralistic diplomatic tradition. Moving closer to the world’s second-largest economy, to an open and inclusive China, responds to Panama’s fundamental interests.  


Second, there is enormous room for mutually beneficial cooperation. Since the establishment of diplomatic relations, especially within the framework of the Belt and Road Initiative, bilateral practical cooperation has made great strides: bilateral trade grew from $6.38 billion in 2016 to $12.84 billion in 2024. Chinese direct investment in Panama increased from $270 million in 2016 to $1.4 billion in 2023. China is the main supplier to the Colon Free Trade Zone and the second largest user of the Panama Canal. Nearly 200 Chinese companies operate in Panama, generating tens of thousands of jobs. China has provided technical training to more than 8,800 Panamanian professionals from various sectors, offering substantial support to the development of the country’s talents. 


Currently, China is boosting domestic consumption and encouraging Chinese companies to invest abroad. China is also a major manufacturing and trading country, serving as a major trading partner for more than 150 countries and regions. Panama, with its unique geographic location as a global logistics hub, is seeking to develop infrastructure and improve social conditions. This complementarity greatly expands the potential for cooperation.  Third, there is strong social support. There are more than 300,000 Chinese-Panamanian compatriots in Panama, representing 7% of the total population, constituting an inseparable part of Panamanian multicultural society. The establishment of diplomatic relations between China and Panama enjoyed a broad social base, supported by all political parties, organizations, and sectors of Panamanian society.


Any action that damages these ties will face the unanimous condemnation of the Panamanian people.  In Chinese, the term “crisis” is composed of two characters: “wēi” (danger) and “jī” (opportunity). It takes courage and wisdom to transform danger into opportunity.  We must have confidence. Actions that go against the tide of the times will end up drowned by the tide of history. We trust that Panamanians are clear about who their true friend in the world is.  We must act now. The development of China-Panama relations is not limited to following conventional routes alone, but can also explore innovative paths. Even if the road is more winding, if the direction is right, we will move forward. The one-China principle must be strictly adhered to.


Otherwise, bilateral relations would fall into a dangerous detour and suffer serious setbacks.  We must think about the people. The Fourth Ministerial Meeting of the China-CELAC Forum was recently held successfully in Beijing. More than 100 cooperation projects were agreed upon over the next three years, and China announced 20 measures to support the development of Latin America and the Caribbean (LAC).  Both sides will work to strengthen the coordination of development strategies, thoroughly promote the joint construction of a high-quality Belt and Road Initiative, deepen cooperation in traditional areas such as infrastructure, agriculture and food, and energy and mining, and expand cooperation in emerging areas such as clean energy, 5G communications, the digital economy, and artificial intelligence. 


China will import more quality products from LAC and encourage its companies to increase investment in the region. To support the development of countries in the region, over the next three years, China will provide a credit line valued at 66 billion yuan RMB, offer 10,000 training opportunities in China, and implement 300 “small and beautiful” welfare projects for LAC countries.  The Panamanian people can also fully benefit from this cooperation. China welcomes more exports of Panamanian products and will support more Chinese companies to invest in Panama. To this end, we hope the Panamanian government will provide a fair and non-discriminatory business environment for Chinese companies.


We will continue to organize the participation of Chinese companies in fairs in Panama, including those within the country.  We also invite Panama to increase its presence at flagship Chinese fairs such as the Canton Fair, the International Import Expo, and the Trade in Services Fair to expand business opportunities.  China and Panama are not only new friends, but also old acquaintances. In the year since my arrival, the thing I’ve heard most throughout Panama is: China is a brother country. Let’s cherish this brotherhood, support each other, move forward together hand in hand, overcome difficulties, and march forward with determination!