Panama and the Canal vs China/U.S. – National Security or Economic Dominance?
Pete Hegseth, the U.S. defense secretary, boldly said, “The U.S. is taking back China’s influence from the vital canal.” Hegseth suggested the two superpowers had already signed an agreement fashioned by Panama officials that would allow U.S. warships free passage into and out of the canal. “Hold up on that agreement,” said Panamanian President José Raúl Molino, denying such an agreement. Mulino further rejected Hegseth’s announcement with, “I completely reject that statement.” Tempers and tensions continue to escalate between the U.S. and China and, as well as the Panamanian government. There is no denying that China is investing huge amounts of money and resources in the canal, jockeying for a military and economic advantage.
China has an oversized footprint in military capability, as well as ground research stations that enhance its space programs. China exploits with impunity U.S. and global natural resources with “factory fishing fleets” that steal food from the U.S. and other global reasons for war. Hegseth issued a chilling warning about the dust up at the canal. He added that “war with China is not inevitable and the U.S. does not seek war in any form. However, we must prevent war by robustly and vigorously deterring China’s threats in this hemisphere.” Panama Canal port operations were previously controlled by the Hong Kong-based company, CK Hutchison. Hutchison failed to renew its contract in 2021.
Recent aerial photographs show cargo vessels docked at Balboa Port, operated by Panama Ports Company, at the Panama Canal, in Panama City, Panama. Last month a conglomerate of affected countries agreed to a $19 billion deal to sell a group of 43 ports, including two in Panama, to U.S.-based BlackRock. Trump hailed the agreement, seen as a solution to his complaints that the canal was owned by China, but now that deal may fall apart. China has criticized the deal, opening antitrust probes, and a Panamanian official has accused CK Hutchison of failing to properly renew its contract in 2021 and owing the country $300 million.
The Chinese embassy in Panama further alleged the U.S. has carried out a ridiculous campaign about the “theoretical Chinese threat” in an attempt to sabotage Chinese-Panamanian cooperation, which is all just rooted in the United States’ own geopolitical interests.” This saber rattling over control of the Panama Canal comes in the midst of a deadlock between the U.S. and China over tariffs. The U.S. has now engaged China in a trade war with a tariff of 104 percent attached to all Chinese imported goods. China has retaliated with more tariffs on U.S. goods. If you see a label that says, “Made in China,” expect to pay more. And so it goes. Stay tuned.
China says no Amount of Lies can Conceal U.S. Ambition to Control the Panama Canal
BEIJING, April 23: A Chinese foreign ministry spokesperson on Wednesday urged the United States to stop smearing China by stoking up the Panama Canal-related issues, saying no amount of lies can cover up the U.S. ambition to control the canal. Spokesperson Guo Jiakun also urged the United States to stop obstructing normal exchanges and cooperation between China and Latin American countries, including Panama.
Guo made the remarks at a press briefing in response to Panamanian media’s criticism of U.S. interference and hegemonic actions in Central American countries, particularly Panama. The Panamanian side accused the United States of exploiting the fabricated “China threat” to seize the control of the Panama Canal, and exposed U.S. plans to establish a long-term military presence in Panama, which could cause risks of new military intervention and economic exploitation, and further harm of Panama’s interests. The incisive commentaries from Panamanian media have laid bare the true nature of U.S. hegemonic conduct, Guo said.
By concocting lies about Chinese control over the Panama Canal and maliciously attacking China, Washington is merely creating excuses to justify its own control of the canal, advance its expansion, and pursue its hegemony of Monroe Doctrine style, Guo added. “Both the international community and the Panamanian people see through this clearly,” said Guo, adding that Panamanian President Jose Raul Mulino has also rejected all claims of Chinese interference and intervention. The United States should focus on taking concrete actions that genuinely contribute to regional and global development and prosperity, Guo said.
US to Deploy Additional Troops to Panama Canal, Hegseth Says
The US plans to send more troops to the Panama Canal, US Defense Secretary Pete Hegseth announced via TASS. “We secured a framework for first of Panama Canal passage for US military vessels and auxiliary vessels, as well as the additional presence of US troops stationed through both sides of the Panama Canal,” he told students at the US Army War College in Pennsylvania. Hegseth first mentioned plans to expand US military presence in Panama on April 9 following a visit to the Central American country. The minister then spoke about what he called rotational joint exercises in Panama. US President Donald Trump has repeatedly said that Washington needs to regain control of the Panama Canal.
He has criticized the high tariffs charged for passage of the Panama Canal, saying that the transfer of control over the waterway in 1999 was a gesture of cooperation and not a concession to other countries. On January 20, in his inaugural address, he declared an intention to take back the Panama Canal. The US leader also said, without providing evidence, that the waterway was allegedly managed by China. A Chinese Foreign Ministry spokesman said statements that China holds full control over the canal are “absolutely false.” Panamanian President Jose Raul Mulino said that sovereignty over the canal and the country’s independence are not negotiable. During Hegseth’s April visit, Panama’s Attorney General’s Office said it had opened an investigation against Panama Ports Company, which owns ports on both sides of the Panama Canal. The company belongs to the Hong Kong-based investment conglomerate CK Hutchison.
