Since recognizing the PRC in 2017, Panama has welcomed the Chinese commercial presence while maintaining the canal’s treaty-based neutrality and non-discrimination. Evaluate Panamanian President José Raúl Mulino’s political skills in managing domestic political pressure in managing Chinese and American demands. Analyze the strategic context of the Panama Canal in China-U.S. strategic competition. Second, legal-institutional prudence: maintaining the ACP’s autonomy and canal neutrality above suspicion is easier if Panama is not formally part of a Chinese geoeconomic brand. The strategic sweet spot remains principled non-alignment grounded in canal neutrality, diversified investors in port and logistics ecosystems, and demonstrable delivery on domestic priorities.