US aims to regain control of the Panama Canal from Chinese influence, says Pentagon chief

The United States aims to reclaim the Panama Canal from Chinese influence, U.S. Defense Secretary Pete Hegseth stated on Tuesday during his visit to the Central American country. Following discussions with the Panamanian government, Hegseth committed to enhancing security collaboration with local forces and emphasized that China would not be permitted to exploit the canal for espionage through its commercial ties.

“Together, we will reclaim the Panama Canal from China’s influence,” Hegseth declared at a pier in Panama City that had been renovated with U.S. support. “China did not construct this canal, does not manage it, and will not weaponize it. With Panama leading the way, we will ensure the canal remains secure and accessible to all nations.”

Over 40% of U.S. container traffic, valued at approximately $270 billion annually, transits the Panama Canal, representing more than two-thirds of the vessels that navigate through this vital interoceanic waterway each day. Hegseth, the first U.S. defense secretary to visit Panama in decades, flew over the canal in a Black Hawk helicopter after meeting with U.S. troops and Panamanian security personnel. He also visited the Miraflores lock, greeting sailors aboard a passing container ship.

His remarks were carefully crafted, conveying a strong stance while providing reassurances to Panamanians who may still be concerned about former President Trump’s threats regarding the canal. While Hegseth focused on diminishing Chinese influence, Trump has made broader statements and has not dismissed the possibility of military action. Hegseth’s visit comes in the wake of reports that the Trump administration has sought military options to secure access to the canal, which the U.S. constructed over a century ago and transferred to Panama in 1999.

Trump has expressed dissatisfaction, claiming it was a detrimental agreement for the United States. Given Trump’s assertive language, the stakes were elevated for Hegseth’s visit. Ryan Berg, director of the Americas Program at the Center for Strategic and International Studies, remarked, “Overall, this has not been a successful issue for the United States regarding public diplomacy in Panama.”

Nevertheless, both current and former U.S. officials, along with experts, assert that the United States has found a cooperative ally in Panama’s President Jose Raul Mulino, whom Hegseth met earlier on Tuesday. In February, Mulino declared Panama’s official withdrawal from China’s Belt and Road Initiative and has supported Trump’s efforts to address migration issues. He has accepted deportation flights for non-Panamanians and has worked to reduce migration from South America through the perilous Darien jungle.

Hegseth commended Mulino, noting that his administration recognizes the threat posed by China. His comments regarding Panama taking the lead on canal security issues seemed to acknowledge local sensitivities. During his visits to military bases, previously known as Fort Sherman and Rodman Naval Station before the U.S. withdrawal, Hegseth referred to the canal as “key terrain” and expressed hope for increased U.S. troop engagements, including the revitalization of a jungle survival training center.

“In reality or in perception, the communist Chinese have aimed for greater control over this canal, and to that we say: Not on our watch,” Hegseth stated to U.S. troops and Panamanian security forces. “We will enhance our partnership even further.”

Hegseth, a veteran of the U.S. military and a former host on Fox News, has shown strong support for Trump’s security initiatives focused on the southern border. This includes actions such as sending U.S. troops to the border with Mexico, providing facilities at Guantanamo Bay, Cuba, for the detention of migrants, and utilizing military aircraft for deportation operations.

U.S. SECURITY ISSUES

Trump has inaccurately asserted that China is managing the Panama Canal, a claim that Hegseth himself refuted on Tuesday, along with the allegation of Chinese military presence in the area. However, experts recognize legitimate U.S. security concerns, especially regarding potential espionage, given the significant Chinese commercial involvement in Panama, which includes plans by Chinese companies to construct a bridge over the canal.

The Chinese Embassy in Panama issued a statement clarifying, “China has never been involved in the management and operation of the Panama Canal, nor has it ever interfered in its affairs. The only instance in history when the canal was blocked was due to a U.S. invasion. Who is genuinely protecting the canal’s neutrality and prosperity? Who continues to demand the ‘reclamation’ of the canal? Who poses the real threat to it?”

Last month, Trump praised a deal orchestrated by the U.S. firm BlackRock to acquire the majority of the $22.8 billion port operations from Hong Kong’s CK Hutchison, which includes ports at both ends of the Panama Canal. Trump characterized this acquisition as a demonstration of the United States “reclaiming” the canal. In response, China has criticized the deal, with its market regulator announcing plans for an antitrust review.

Current and former U.S. officials emphasize that the Panama Canal is vital for the movement of U.S. warships in any potential future conflict in Asia, as Navy vessels would need to transit from the Atlantic to the Pacific to support military operations.

China can monitor ships traversing the canal without needing to obstruct it. However, John Feeley, who served as the U.S. ambassador to Panama from 2015 to 2018, challenged the Trump administration’s claim that China’s involvement in Panama constituted a breach of the U.S.-Panama treaty.

“The issue with Trump’s approach is the intimidation tactic he employed, asserting that the neutrality treaty has been violated. This is not the case,” Feeley stated. Mulino has defended Panama’s management of the canal, asserting that it has been conducted responsibly for global trade, including that of the United States, and emphasized that it “is, and will remain, under Panamanian control.”