Former President Donald Trump’s recent claims about Chinese control of the Panama Canal have sparked a diplomatic row, raising concerns about U.S. economic and military interests in the region.
At a Glance
- Trump claimed Chinese soldiers operate the Panama Canal
- Panamanian President José Raúl Mulino denied Chinese military presence
- Trump threatened to retake control of the canal from Panama
- China is the second-largest user of the Panama Canal with significant investments in Panama
- Concerns remain about China’s growing influence in global shipping and ports
Trump’s Claims and Panama’s Response
Former President Donald Trump ignited controversy with his recent statements about Chinese control of the Panama Canal. In a social media post, Trump declared, “Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal.” This claim, however, was swiftly refuted by Panamanian President José Raúl Mulino.
Mulino firmly stated, “There is absolutely no Chinese interference or participation in anything that has to do with the Panama Canal.” He emphasized that the canal is operated by an agency of the Panamanian government, not by Chinese soldiers as Trump alleged. The Panamanian leader further asserted, “The canal is Panamanian and belongs to Panamanians. There’s no possibility of opening any kind of conversation around this reality.”
The US views China’s growing presence in the Western Hemisphere as a threat to its regional interests. In contrast to US concerns, China's cooperation with Panama and other Latin American countries is driven by mutual interests and local needs, fostering regional development and… pic.twitter.com/lCtSC5WZku
— Global Times (@globaltimesnews) December 27, 2024
Trump’s Threats and Economic Concerns
Trump’s statements went beyond mere accusations. He threatened to take control of the canal back from Panama, citing high shipping rates as a justification. The former president announced Kevin Marino Cabrera as his nominee for Ambassador to Panama, stating he “will do a fantastic job representing our Nation’s interests in Panama!” This move suggests Trump’s intention to address what he perceives as unfair shipping fees and potential Chinese influence in the region.
“Chinese control of the Panama Canal absolutely poses a national security threat to the U.S.,” Brian Hughes from the Trump-Vance transition team said.
The Panama Canal, a crucial maritime artery, sees up to 14,000 ships annually and was under U.S. control until 1999. Recent drought conditions have led to increased transit costs, adding to the economic concerns surrounding the canal’s operations.
China’s Growing Influence
While some say Trump’s claims about Chinese soldiers operating the canal are unfounded, there are legitimate concerns about China’s growing influence in global shipping and ports. China, as the world’s largest exporter, has invested heavily in port construction worldwide. In Panama specifically, China is the second-largest user of the canal and has made significant investments in the country.
This influence allows China to monitor other countries’ activities and poses strategic concerns for the United States. The situation is further complicated by Panama’s establishment of diplomatic ties with China in 2017 after breaking ties with Taiwan. Additionally, CK Hutchison Holdings, a Hong Kong-based company, manages two ports at the canal, highlighting China’s economic presence in the region.
Implications for U.S. Interests
The controversy surrounding the Panama Canal underscores the complex interplay of economic and geopolitical factors affecting U.S. interests. While Trump’s claims about direct Chinese control are inaccurate, the growing Chinese influence in global shipping and strategic waterways remains a concern for U.S. policymakers. The situation highlights the need for a nuanced approach to addressing China’s economic expansion and its potential impact on U.S. strategic interests in Latin America and beyond.
