Panama’s president has made it clear: the country won’t renew its Belt and Road deal with China, a move that comes as the U.S. raises concerns about Beijing’s influence around the Panama Canal.

President Raúl Mulino shared this decision during a meeting with U.S. Secretary of State Marco Rubio over the weekend. He emphasized that Panama’s control over the canal isn’t up for discussion, a response to U.S. worries about China’s growing presence near the vital waterway.

The Belt and Road deal, signed in 2017, was part of China’s global infrastructure initiative. However, Mulino suggested the agreement could end sooner rather than later, with Panama looking to strengthen ties with the U.S. instead.

During his visit, Rubio reportedly expressed concerns about China’s potential “control” over the canal, hinting that the U.S. might take steps to protect its interests under a 1977 treaty. That agreement ensures the canal remains neutral, with the U.S. retaining the right to intervene militarily if its operations are threatened.

Mulino, however, downplayed the idea of U.S. military action, calling it unlikely. He also mentioned an ongoing audit of a company linked to China that operates terminals near the canal.

The company in question, Panama Ports Company, is part of Hong Kong-based CK Hutchison Holdings, a major global port operator. While it manages terminals around the canal, it doesn’t control access to the waterway itself.

Beyond the canal, Mulino and Rubio discussed expanding a program to repatriate migrants who enter Panama illegally. Under the plan, the U.S. would cover the costs of returning individuals to their home countries.

The Panama Canal remains a critical global trade route, and its neutrality is a hot-button issue. As the U.S. and China vie for influence in the region, Panama’s latest moves signal a shift in its approach to international partnerships.