Panama is moving quickly to formalize the country’s new diplomatic relationship with China. This week Panama’s Foreign Ministry announced it had opened an embassy in Beijing, a major symbolic step forward in cementing the political association.
China’s has already reciprocated, naming its trade office in Panama City as its official embassy in Panama.
The embassy announcements come only a few weeks after Panama formally cut ties with Taiwan, clearing the way for the establishment of a new diplomatic relationship with China. Until the announcement, Panama was one of the few countries to recognize Taiwan, which was a roadblock to any long-term relationship with China.
We’ve already discussed the implications of this new relationship with China, which should boost all levels of the Panama economy. The property market will be one of the key beneficiaries, with Chinese buyers already playing an increasingly important role in the market.
The announcement about the new embassy was made during a visit by a delegation of investors from China, providing clear evidence that the improved relationship is already paying dividends.
“The opening of the Republic of Panama’s embassy in the People’s Republic of China was done in accordance with the principles that frame the diplomatic relations between both countries,” the foreign ministry said in a statement.
The embassy is already functional, although Panama has yet to name an ambassador, the Ministry said.
China is already the second biggest customer for the Panama Canal and a key trading partner for Panama, which is a likely spot to serve as China’s primary hub in the region.