India, March 26 -- Panama's recent withdrawal from China's Belt and Road Initiative (BRI) amid United States (US) pressure over Chinese proxy control of the Panama Canal underscores the geopolitical tensions surrounding Beijing's flagship infrastructure programme. China's lending practices have pushed several of India's neighbours including Pakistan, Bangladesh, Nepal, and Sri Lanka towards economic distress. With the Maldives now on the verge of sovereign default, China's funding of infrastructure in these nations is clearly not purely economic and carries strategic implications that directly impact India's regional security.

The 2017 BRI agreement, set to auto-renew in 2026, had enabled China to invest in Panamanian infrastructure, inc...