U.S. Secretary of Defense Pete Hegseth, during a visit to Panama City, announced intentions to diminish Chinese influence over the Panama Canal. Speaking at the inauguration of a U.S.-financed dock at the Vasco Nuñez de Balboa Naval Base, Hegseth stated, “Together, we will take back the Panama Canal from China’s influence,” emphasizing the United States’ commitment to ensuring the canal’s security and operational integrity.
Hegseth expressed concerns about China’s involvement in the region, particularly regarding a Hong Kong-based consortium’s lease on ports adjacent to the canal. He highlighted the potential for such commercial relationships to be used for espionage, posing threats to regional security. In response, the consortium is reportedly selling its stake to a group led by BlackRock Inc., potentially shifting control to American hands.
This visit follows President Donald Trump’s earlier assertions that the U.S. is overcharged for canal usage and suggestions that the U.S. might retake control of the canal. Despite these statements, Panama’s President José Raúl Mulino has denied Chinese influence in the canal’s operations and reaffirmed Panama’s sovereignty over the waterway.
Hegseth remarks underscore a strategic shift towards strengthening U.S.-Panama military and security ties to counteract perceived Chinese encroachment in the region. This approach aims to maintain the canal’s neutrality and ensure its accessibility for international trade.
The Panama Canal, constructed by the U.S. in the early 20th century, was handed over to Panama in 1999 under a neutrality treaty. The current developments highlight the geopolitical significance of the canal and the ongoing efforts by the U.S. to safeguard its interests in this vital maritime corridor.
