China Lashes Out at US ‘Coercion’ after Panama Declines to Renew Infrastructure Agreement

 An aerial view shows cargo vessels after transiting through the Panama Canal, in Colon, Panama, February 1, 2025. (Reuters)
An aerial view shows cargo vessels after transiting through the Panama Canal, in Colon, Panama, February 1, 2025. (Reuters)
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China Lashes Out at US ‘Coercion’ after Panama Declines to Renew Infrastructure Agreement

 An aerial view shows cargo vessels after transiting through the Panama Canal, in Colon, Panama, February 1, 2025. (Reuters)
An aerial view shows cargo vessels after transiting through the Panama Canal, in Colon, Panama, February 1, 2025. (Reuters)

China on Friday lashed out at what it called US “coercion” after Panama declined to renew a key infrastructure agreement with Beijing following Washington’s threat to take back the Panama Canal.

Foreign Ministry spokesperson Lin Jian said at a briefing that China “firmly opposes the US smearing and undermining the Belt and Road cooperation through means of pressure and coercion.”

Assistant Foreign Minister Zhao Zhiyuan also met Panama’s ambassador to China and lodged solemn representations on Friday, the Foreign Ministry said Saturday.

The Belt and Road Initiative is President Xi Jinping’s signature foreign police drive to bind China closer to countries in the region and beyond by building roads, railways, airports, power plants and other infrastructure. The program has completed some major projects but also raised concerns about debt and environmental impact.

Panama’s decision to walk away from it was seen as a concession to the US over the canal after US Secretary of State Marco Rubio warned Panamanian leader José Raúl Mulino on Sunday that Panama must immediately reduce what President Donald Trump says is Chinese influence over the canal area or face potential retaliation from the United States.

Mulino has rejected pressure from the new US government to discuss ownership of a waterway that is vital to global trade.

Despite that, some believe Panama may be open to a compromise under which canal operations on both sides are taken away from the Hong Kong-based Hutchison Ports company, which was given a 25-year no-bid extension to run them. An audit into the suitability of that extension is already underway and could lead to a rebidding process.

A drop in water levels in the canal due to drought has slowed transit through the canal, raising further complaints from Trump, although the delays appear to have nothing to do with China.

Lin said the Belt and Road Initiative has brought “active participation” from over 150 countries and that it has brought “fruitful results” to Panama and China, but gave no examples.

“We hope Panama will bear in mind the general picture of bilateral relationship and the long-term interests of both peoples, resist external interference, and make the right decision,” Lin said.



Iran Weighs Retaliation for US Strikes as Trump Raises Idea of Regime Change

A satellite view shows an overview of Fordow underground complex, after the US struck the underground nuclear facility, near Qom, Iran June 22, 2025. MAXAR TECHNOLOGIES/Handout via REUTERS
A satellite view shows an overview of Fordow underground complex, after the US struck the underground nuclear facility, near Qom, Iran June 22, 2025. MAXAR TECHNOLOGIES/Handout via REUTERS
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Iran Weighs Retaliation for US Strikes as Trump Raises Idea of Regime Change

A satellite view shows an overview of Fordow underground complex, after the US struck the underground nuclear facility, near Qom, Iran June 22, 2025. MAXAR TECHNOLOGIES/Handout via REUTERS
A satellite view shows an overview of Fordow underground complex, after the US struck the underground nuclear facility, near Qom, Iran June 22, 2025. MAXAR TECHNOLOGIES/Handout via REUTERS

Iran and Israel traded air and missile strikes as the world braced on Monday for Tehran's response to the US attack on its nuclear sites and US President Donald Trump raised the idea of regime change in Iran. Iran vowed to defend itself on Sunday, a day after the US joined Israel in the biggest Western military action against the country since its 1979 Iranian Revolution, despite calls for restraint and a return to diplomacy from around the world. Commercial satellite imagery indicated the US attack on Saturday on Iran’s subterranean Fordow nuclear plant severely damaged or destroyed the deeply buried site and the uranium-enriching centrifuges it housed, but the status of the site remained unconfirmed, experts said.

In his latest social media comments on the US strikes, Trump said "Monumental Damage was done to all Nuclear sites in Iran."

"The biggest damage took place far below ground level. Bullseye!!!" he wrote on his Truth Social platform.

Trump earlier called on Iran to forgo any retaliation and said the government "must now make peace" or "future attacks would be far greater and a lot easier."

The US launched 75 precision-guided munitions including bunker-buster bombs and more than two dozen Tomahawk missiles against three Iranian nuclear sites, the chairman of the Joint Chiefs of Staff, General Dan Caine, told reporters.

The UN nuclear watchdog, the International Atomic Energy Agency, said no increases in off-site radiation levels had been reported after the US strikes. Rafael Grossi, the agency's director general, told CNN that it was not yet possible to assess the damage done underground.

A senior Iranian source told Reuters that most of the highly enriched uranium at Fordow had been moved elsewhere before the attack. Reuters could not immediately corroborate the claim.

Tehran, which denies its nuclear program is for anything other than peaceful purposes, sent a volley of missiles at Israel in the aftermath of the US attack, wounding scores of people and destroying buildings in Tel Aviv. But it had not acted on its main threats of retaliation, to target US bases or choke off the global oil shipments that pass through the Strait of Hormuz.

Attempting to strangle the strait could send global oil prices skyrocketing, derail the world economy and invite conflict with the US Navy's massive Fifth Fleet based in the Gulf. Oil prices jumped on Monday to their highest since January. Brent crude futures were up $1.52 or 1.97% to $78.53 a barrel as of 0503 GMT. US West Texas Intermediate crude advanced $1.51 or 2.04% to $75.35.

Iran's parliament has approved a move to close the strait, which Iran shares with Oman and the United Arab Emirates. Iran's Press TV said any such move would require approval from the Supreme National Security Council, a body led by an appointee of Iran's Supreme Leader Ali Khamenei.

Caine said the US military had increased protection of troops in the region, including in Iraq and Syria. The US State Department issued a security alert for all US citizens abroad, calling on them to "exercise increased caution."

US Secretary of State Marco Rubio called on China to encourage Iran to not shut down the strait, telling Fox News' "Sunday Morning Futures with Maria Bartiromo" show it would be a "terrible mistake."

"It's economic suicide for them if they do it. And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours," he said.

The Israeli military said on Monday about 20 jets had conducted a wave of strikes against military targets in western Iran and Tehran overnight. ⁠In Kermanshah, in western Iran, missile and radar infrastructure was targeted, and in Tehran a surface-to-air missile launcher was struck, it said.

A missile launched from Iran in the early hours of Monday was intercepted by Israeli defenses, it said. Air raid sirens blared overnight in Tel Aviv and other parts of central Israel.

Iranian news agencies reported air defenses were activated in central Tehran districts to counter "enemy targets", and that Israeli air strikes hit Parchin, the location of a military complex southeast of the capital.

Israel's state broadcaster reported that an Israeli Hermes drone was shot down in Iranian territory, the fourth to be shot down in the area since the start of the campaign.

REGIME CHANGE

In a post to the Truth Social platform on Sunday, Trump raised the idea of regime change in Iran.

"It’s not politically correct to use the term, 'Regime Change,' but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn’t there be a Regime change??? MIGA!!!" he wrote.

Trump's post came after officials in his administration, including US Vice President JD Vance and Defense Secretary Pete Hegseth, stressed they were not working to overthrow Iran's government.

Israeli officials, who began the hostilities with a surprise attack on Iran on June 13, have increasingly spoken of their ambition to topple the hardline Shi'ite clerical establishment.

As Tehran weighed its options, Iranian Foreign Minister Abbas Araghchi is expected to hold talks with Russian President Vladimir Putin in Moscow on Monday. The Kremlin has a strategic partnership with Iran, but also close links with Israel.

Speaking in Istanbul on Sunday, Araghchi said his country would consider all possible responses and there would be no return to diplomacy until it had retaliated.

Russia's foreign ministry condemned the US attacks which it said had undermined the Treaty on the Non-Proliferation of Nuclear Weapons, and warned of conflict spreading in the Middle East. The UN Security Council met on Sunday to discuss the US strikes as Russia, China and Pakistan proposed the 15-member body adopt a resolution calling for an immediate and unconditional ceasefire in the Middle East.

UN Secretary-General Antonio Guterres told the Security Council the US bombings in Iran marked a perilous turn in the region and urged a return to negotiations over Iran's nuclear program.

Commercial airlines were weighing how long to suspend Middle East flights after the US struck Iran. The Middle East route has become more important for flights between Europe and Asia but flight tracking website FlightRadar24 showed empty space on Sunday over Iran, Iraq, Syria and Israel.