China has sent a senior-level delegation to Panama at a time when relations have been clouded by developments surrounding the Panama Canal, a move seen by observers as an attempt to "understand what is unfolding" and possibly reverse the situation.

According to Chinese state news agency Xinhua, a delegation led by Ma Hui, a vice-minister of the Communist Party's diplomacy arm, the International Department, visited the Central American country last week, holding talks with "leaders of major political parties" and think tanks.

Ma was quoted as saying that China was "willing to strengthen exchanges with Panama's political parties and think tanks, enhance mutual understanding and trust, and consolidate the public support foundation for friendly China-Panama relations".

Ma Hui, a vice-minister of the Communist Party's International Department, led the Chinese delegation in Panama last week. 

The visit followed a surprise announcement this month by Hong Kong tycoon Li Ka-shing's CK Hutchison Holdings that it would sell its port operations, including those near the Panama Canal, to a group led by American investment firm BlackRock. That came amid US pressure on Panama to free the canal from what was viewed as Chinese control.

China has fiercely criticised the move, with Beijing's top office for Hong Kong affairs running several commentaries in pro-China newspaper Ta Kung Pao that described the sale as "betraying" the Chinese people. US President Donald Trump has meanwhile lauded the deal.

Dylan Loh, assistant professor of foreign policy at Singapore's Nanyang Technological University, said the Chinese delegation's visit was likely to be aimed at finding out more about the recent moves by Panama to "acquiesce to US pressure and try to tease out the strategic intent of Washington".

He said another goal would be to see if Panama's recent moves were a sign of a "decisive shift" towards the US, and that Beijing would also have been seeking more information on what the sale of ports could potentially mean for China's trading and shipping routes.

Both Panama and China have dismissed Trump's claims about Chinese influence over the Panama Canal. But Panama, under mounting pressure from Washington, last month moved to withdraw from China's Belt and Road Initiative, a decision described by Beijing as "not in the vital interests of Panama".

Loh noted that the delegation led by Ma was from the Communist Party's International Department rather than China's foreign ministry - meaning it was framed as a party-to-party visit - but he added that foreign policy was likely discussed.

"To me, this is a quick response from Beijing to understand what is unfolding and if this may require further ... actions," he said.

Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing, said the visit came amid growing US concerns over increasing Chinese investments in Panama. He said Washington saw that as a challenge and wanted to "weaken China's position as the largest global trading partner".

"The US is trying to disrupt things, forcing Panama to withdraw from deals in a manner similar to what happened with Italy," he said, referring to Italy's exit from Beijing's infrastructure programme in 2023 to align more closely with its Western allies including the US.

According to Wang, the visit showed that despite recent developments China would continue to engage with Panama and seek to "avoid negative impacts" from recent developments, especially involving the Belt and Road Initiative.

He noted that China was set to hold a forum with Latin American and Caribbean states this year, and that Beijing hoped the current situation would not affect that gathering. "Too much negativity could emerge otherwise," he said.

Wang said Beijing needed to work with Panama to "oppose measures forced by the US that go against Panama's long-term interests", and "see if there is room for negotiation to turn the situation around".

"We need to not only improve Panama-China relations but also prevent a domino effect that causes misunderstandings between China and other countries," he said. "We should continue engaging positively with these countries, encouraging them to resist US coercion, which violates their national interests."

According to the Xinhua report on last week's visit, Panama expressed its willingness to deepen friendly exchanges between the two sides and "promote the sustainable development of the Panama-China friendship".