This paper offers a historical overview of Panama’s ties with the “two Chinas”, focusing initially on Asian migration to the Isthmus of Panama before the territory became part of New Granada (Colombia). This migration was the result of Chinese labourers being recruited to work for the Panama railway construction company from 1850-1855 and, a few decades later, for construction of the French Canal and the Panama Canal. This will be followed by an examination of the Republic of China (ROC or Taiwan) and the People’s Republic of China (PRC) respective policies towards Panama. In addition, this paper analyses the new social, political, and economic scenarios resulting from Panama’s decision to establish diplomatic relations with the People’s Republic of China in June 2017. Panama’s engagement with China, particularly its links with China’s signature Belt and Road Initiative presents opportunities and challenges for the Central American country as it balances these with its national priorities
