Since the Republic of Panama and the Popular Republic of
China (PRC) established a diplomatic relationship back in June,
much has been speculated as to the effect that this bilateral
understanding will have in the dynamic economy of the Republic
The PRC has been seeking a solid investment partner in Latin
America, and having diplomatic relations with various countries
in the region, is now focusing its efforts to set Panama as its
midpoint for its ventures in this part of the world.
Currently, both countries are negotiating 19 memoranda of
understanding, including agreements to enhance their respective
industrial, logistics, infrastructure and tourism sectors,
Of such agreements, the construction and installment of a
first world railway system that would connect Panama City and
Chiriquí, the country's second most important province,
will be negotiated. As far as connectivity goes, because of
these agreements, Air China, one of China´s main
airlines, has just approved a direct flight from Beijing to
Panama City. Bearing in mind that many tourists come from the
PRC, we can only expect favourable opportunities in that
important sector of the economy.
A free trade agreement, which is also being negotiated, will
very likely increase trade drastically between both countries,
as the Republic of Panama would partner with the world's number
one exporter of merchandise and goods.
In the energy sector, Exim Bank of China, has expressed its
interest in financing several projects of the Empresa de
Transmisión Eléctrica (ETESA), Panama's national
energy transmission company.
These agreements will definitively boost Panama's economy to
a new level, creating new business opportunities, which will in
turn increase the interest of foreign investors.