China has condemned the United States for alleged coercion after Panama opted not to renew a significant infrastructure agreement tied to the Belt and Road Initiative. The decision, interpreted as a concession to U.S. pressure regarding influence over the Panama Canal, sparked a strong response from China's Foreign Ministry. U.S. officials, including Secretary of State Rubio, warned of potential repercussions if Panama did not diminish Chinese presence in the area. While Panama's leadership has dismissed U.S. assertions about a military vessel deal, the ongoing drought has exacerbated challenges at the canal.