U.S. Warns Panama Over China's Influence on Canal Operations

U.S. Secretary of State Marco Rubio informed Panamanian President Jose Raul Mulino on Sunday that President Donald Trump views China's growing influence as a threat to the Panama Canal and demands immediate changes, according to a State Department spokesperson. The U.S. warned that failure to act could prompt American intervention.

The Panamanian government has strongly denied claims that China controls canal operations, insisting it ensures fair access to all global shipping. While Panama directly oversees the canal, key port terminals on both ends are operated by Hong Kong-based CK Hutchison Holdings, a publicly traded company. Other nearby ports are managed by firms from the U.S., Singapore, and Taiwan.

Concerns over China’s expanding influence in Latin America have heightened geopolitical tensions, with Washington closely monitoring strategic infrastructure like the Panama Canal. The U.S. has repeatedly voiced concerns over China’s role in critical logistics hubs, citing national security risks.

As the world’s most vital trade route linking the Pacific and Atlantic Oceans, the canal handles nearly 5% of global maritime trade. Any disruption or control shift could impact global supply chains and shipping costs. The Biden administration had previously expressed similar concerns over foreign investments in critical infrastructure.

Panama has reassured the international community that it remains committed to neutrality in managing the canal. However, tensions between Washington and Beijing over trade and security continue to escalate, with the U.S. determined to counter China's growing foothold in Latin America.

The latest developments underscore the strategic significance of the Panama Canal and its role in global geopolitics, as Washington moves to safeguard its interests amid rising competition with Beijing.