China-Panama Ties: Presidents Xi, Varela strengthen relations with state visit

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Europe

02:38

We start with Chinese President Xi Jinping's tour in Latin America and Europe. Trade, tourism and technology are topping the agenda as President Xi became the first Chinese head of state to visit Panama. The two sides spent the day working to foster stronger bilateral ties, just a year and a half after establishing relations. CGTN's Roee Ruttenberg has more from Panama City.

Even before arriving in Panama for the first time ever, Xi Jinping - the Chinese President - said he's no stranger to the country.

And though diplomatic relations were established just 18 months ago, President Juan Carlos Varela greeted Xi like a familiar friend.

JUAN CARLOS VARELA PRESIDENT OF PANAMA "To receive for the first time in the history of Panama a President of the People's Republic of China is reason for celebration, not only by my government but also by all the political and the entire Panamanian people in general."

The two leaders oversaw the signing of a series of agreements covering everything from e-commerce, to trade and tourism, banking, and student exchanges.

Panama - a country of just four million people - has seen a significant increase in Chinese investment. Chinese firms are winning more and more tenders for big projects. And most expect there's more to come.

Xi Jinping said this visit will lay the groundwork for long-term bilateral cooperation.

XI JINPING CHINESE PRESIDENT “President Varela and I also appreciate the signing of cooperation instruments in areas of trade, services, commercial economic provisions, maritime and transport issues, quality inspection, justice, culture and education. Everything so that the relations of Panama and China can have a better future."

Panama was the first Latin American country to sign on to China's Belt and Road Initiative. Xi sees its Canal which he toured on Monday as integral for Chinese shipments bound for the Caribbean and the eastern shores of the Americas.

Washington, which first built-then-occupied the Canal for decades, has warned Panama against losing its sovereignty over the passage to China, a suggestion Xi on Monday rebuked.

ROEE RUTTENBERG PANAMA CITY "This was a short visit - just one full day. But by all accounts, it was a long time in the making. China is now officially here, and it plans to stay. Roee Ruttenberg, CGTN, in Panama City, Panama."