(Yicai Global) June 19 -- The Chinese Chamber of Commerce in Panama held a meeting on June 16 for Chinese companies to discuss their prospects after the country established diplomatic relations with China.

Though there will be opportunities and challenges ahead, Chinese firms in Panama will relish chances to expand and will become more confident as ties are strengthened, delegates from Chinese businesses said.

The establishment of diplomatic ties marks the start of an era in China-Panama relations and will help further promote economic cooperation, people-to-people exchanges and friendship between the two nations, China News Service reported, citing Wang Jimin, head of the chamber and president of the Bank of China Ltd.'s [SHA:601988] Panama branch. Chinese companies will enjoy warmer interactions with Panamanian governments and firms and get more active local assistance, he said.

Although it is a small country, Panama has unique geological advantages and international influence, said Wang Xiaofeng, general manager of China Harbour Engineering Company Ltd.'s regional branch. Chinese enterprises are set to benefit from a better business climate and faster development. Wang Xiaofeng said that he is convinced that Chinese groups will become more competitive in Panama against the background of international collaborative initiatives such as One Belt, One Road.

The Chinese Chamber of Commerce in Panama was founded in 2006 and has about 30 companies as members.