Which country became the first in Latin America to exit China's Belt and Road Initiative in 2025?

Correct option is D

The correct answer is (d) Panama

• In February 2025, Panama became the first Latin American country to exit China’s Belt and Road Initiative (BRI).

• The decision came after Panama chose not to renew its 2017 agreement with China, allowing it to expire. The move was primarily driven by concerns over the lack of tangible benefits and the growing Chinese influence near the Panama Canal, which is of strategic importance.

• This shift was influenced by diplomatic pressure from the United States, which has been critical of China’s growing presence in the region.

Information Booster:

• Belt and Road Initiative (BRI): A global infrastructure development strategy initiated by China in 2013, aimed at enhancing trade and economic growth across Asia, Europe, and Africa through large-scale projects.

• Panama's Role in the BRI: Panama had signed an agreement with China in 2017 to join the BRI, mainly for infrastructure development around the Panama Canal, but there was dissatisfaction with the outcomes of this partnership.

• Other Latin American Countries and BRI: While Panama became the first to exit, other countries like Argentina and Chile have continued their participation in BRI, contributing to China's growing influence in the region.

Additional Information:

• US Pressure: The United States has been urging Latin American countries to limit China’s growing influence, especially near strategic locations like the Panama Canal.

• This move could have broader implications for how Latin American countries engage with China moving forward.