The Panama Canal, a critical artery for international trade and U.S. shipping, has become the center of a geopolitical clash between the United States and China. The canal, under the administration of the Panama Canal Authority, an autonomous agency managed by the Panamanian government, has seen significant Chinese investment through a Hong Kong-based company. This involvement has sparked concern among U.S. lawmakers and officials, who argue it exemplifies China's burgeoning influence in Panama.
In 2021, Panama renewed its contract with China for the operation of ports situated at both entrances to the canal. This development has drawn criticism from the U.S. government, which contends that China's presence violates a neutrality treaty signed by both nations in 1977. Former President Donald Trump has been particularly vocal, threatening to reclaim control of the canal and rebuking what he perceives as Beijing's overreach.
"China's running the Panama Canal. That was not given to China, that was given to Panama – foolishly – but they violated the agreement, and we're going to take it back, or something very powerful is going to happen." – Donald Trump
Despite these assertions, Panama maintains that its sovereignty and independence over the canal remain intact. President Jose Raul Mulino has downplayed any immediate threats to the neutrality treaty and expressed skepticism over the need for military intervention.
"I do not feel that there is any real threat at this time against the (neutrality) treaty, its validity, and much less the use of military force to make the treaty." – Jose Raul Mulino
U.S. Secretary of State Marco Rubio has also weighed in on the issue, warning President Mulino of potential consequences if measures are not taken to curb China's influence over the canal. Rubio's visit to Panama underscores Washington's intent to counteract China's growing economic and political sway in Latin America.
"I don't think troops will be necessary in Panama" – Donald Trump
Rubio toured the Miraflores Locks, a strategic point where ships transition between the Pacific Ocean and the canal. During his visit, he emphasized the importance of maintaining Panama's neutrality and urged diplomatic efforts that prioritize migration issues within the region.
China has responded to these allegations by stating that it plays no part in the canal's operations and fully respects Panama's sovereignty. Nonetheless, U.S. officials remain vigilant, citing concerns over China's potential leverage gained through its proximity to this essential waterway.
The U.S. government continues its efforts to ensure regional stability and cooperation with Panama on various issues, including the facilitation of deportation flights. Rubio's trip provided an opportunity for dialogue on these matters, highlighting ongoing diplomatic engagements between the two nations.
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