U.S. Defense Secretary Pete Hegseth has raised alarms about the growing Chinese presence in the Panama Canal, calling it a significant security threat to both the United States and Panama. Speaking at a ribbon-cutting ceremony for a new U.S.-funded dock at the Balboa Naval Base, Hegseth emphasized the joint responsibility of both nations to protect the strategic waterway. His remarks follow a recent two-hour meeting with Panama’s President José Raúl Mulino, where both leaders discussed enhancing defense cooperation and safeguarding the canal’s sovereignty.
A Shared Commitment to Canal Security
During his speech, Hegseth stressed the importance of ensuring that no foreign power, including China, could interfere with the function of the Panama Canal. The U.S. and Panama have taken steps to bolster their defense and security ties, now operating at unprecedented levels. Hegseth’s warning comes at a time of heightened concerns over Chinese-controlled infrastructure at both ends of the canal, which he argued could lead to security vulnerabilities for both countries.
While Hegseth called out the Hong Kong consortium that currently holds control over the canal’s ports, plans are in motion for them to sell their stake. Despite this, the U.S. remains uneasy about the increasing influence of China in the region.
Chinese Infrastructure Raises Surveillance Concerns
One of the primary issues raised by Hegseth is the growing Chinese control over key logistics infrastructure in the canal zone. He expressed concern that such control could facilitate surveillance and undermine the security of both the U.S. and Panama. Hegseth’s remarks echo the long-standing criticisms of former President Donald Trump, who warned against foreign dominance in the region and questioned the fairness of U.S. access to the canal.
While Panama’s government has rejected claims of Chinese interference, a recent audit of the Hong Kong consortium’s lease uncovered contract irregularities, raising suspicions about the nature of the relationship between China and Panama Canal operations.
Growing Tensions and U.S. Influence
The escalating tensions surrounding the canal have sparked debates over its governance. U.S. officials have questioned the fairness of tolls and expressed concerns about foreign control of such a vital asset. President Trump has previously claimed that the U.S. overpays for access to the canal and may need to reconsider its relationship with Panama regarding control over the waterway.
Reports from February suggested that the U.S. had secured free passage for its warships through the canal, but this claim was later contradicted by Panamanian officials. U.S. Secretary of State Marco Rubio also weighed in, telling President Mulino that Trump believes China’s presence in the canal region violates the terms of a historic treaty signed in 1999, which mandates that the canal remain permanently neutral and free from foreign influence.
A Changing Landscape for Canal Management
Meanwhile, the Hong Kong company, CK Hutchison, which currently controls canal infrastructure, has announced plans to sell its controlling stake. The sale will likely result in U.S.-based BlackRock Inc. taking over the management of the canal’s ports once the deal is finalized. This potential shift in control could have significant implications for both U.S. strategic interests and Panama’s economic future.
Despite the concerns raised by Hegseth and other U.S. officials, President Mulino has repeatedly defended Panama’s autonomy in managing the canal. He insists that the country will continue to maintain its neutrality and independence in dealing with foreign interests. The dispute over the canal’s future remains unresolved, and the geopolitical tensions surrounding it are expected to intensify in the coming months
