The US will take back the Panama Canal, ending China’s influence in one of the world’s most important waterways, US Secretary of Defence Pete Hegseth said today after a rare visit to the Central American nation.
Marking the first visit by a US defence secretary to Panama in decades, Mr Hegseth held a closed-door meeting with Panamanian President Jose Raul Mulino. He also got a close-up look of the canal as Washington reiterated its deep concern over China’s investments and involvement in and around the crucial waterway connecting the Atlantic and Pacific oceans.
Following talks with Panama’s government, the Pentagon chief vowed to deepen the US military’s security cooperation with Panamanian forces. China, he said, would “not be allowed to weaponize” the canal by using Chinese firms’ commercial relationships as a guise for espionage.
“Together, we (Panama and the US) will take back the Panama Canal from China’s influence,” Secretary Hegseth said in Panama City. Given Donald Trump’s tough rhetoric, the stakes were high for Secretary Hegseth’s visit.
The new arrangement with Panama, a first since 1999, will effectively end China’s influence in the Panama Canal, he suggested. “China did not build this canal. China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations,” he said.
The Pentagon chief also praised President Mulino, saying his government understood “the threat from China”. His remarks about Panama being in the “lead” on addressing the canal’s security concerns appeared to be a nod to Panamanian sensitivities.
While Secretary Hegseth spoke about removing Chinese influence from Panama, President Trump has spoken in broader terms and not ruled out using military force, if necessary. Even before Mr Hegseth reached Panama, the Trump Administration had reportedly requested options from the US military to ensure access to the Panama Canal.
The United States had built the Panama Canal more than a century ago and handed its complete operations over to Panama in 1999. Today’s development changes that dynamic with the US military likely to start patrolling and accessing the canal frequently, and in coordination with Panama’s security agencies.
According to news agency Reuters, several current and former US officials and strategic experts say that the United States has found a willing partner in tackling Chinese influence in Panamanian President Jose Raul Mulino.
In February, President Mulino had announced Panama’s formal move to exit China’s Belt and Road Initiative. He has also aided Donald Trump’s crackdown on migrants in the United States. He did so by accepting US’ deportation flights of non-Panamanians and worked to curb migration from South America by those crossing illegally through his country’s dangerous Darien jungle.
In a significant move last month, US firm BlackRock led a deal to buy out most of the $22.8-billion ports business of Hong Kong conglomerate CK Hutchison, including its ports on either end of the Panama Canal. At the time President Trump celebrated the deal, saying that the purchase was an example of how the United States was “reclaiming the Panama Canal”.
China however, had slammed the deal. The markets regulator has said that it will carry out an antitrust review of the deal.
Military experts have pointed out that in the event of a war in Asia, the Panama Canal plays a critical role as US naval ships cross from the Atlantic to the Pacific to support war efforts. With China’s vast presence in and around the canal, it could hinder the passage of ships, they said, adding that even if Beijing would not be able to stop American naval vessels in such a scenario, it would be in an advantageous position by being able to surveil vessels passing through it.
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