Tuesday, April 08, 2025

After Trip to Indo-Pacific Pentagon Chief Pete Hegseth Says U.S. & Panama ‘Taking Back’ Canal from ‘China's influence,’

U.S. will take back Panama Canal from ‘China’s influence’, Trump defense chief says

Pete Hegseth said Beijing would not be allowed to ‘weaponise’ the waterway by using Chinese firms’ commercial relationships for espionage

A protester in Panama City waves a Panamanian flag during a demonstration against the visit of US Defence Pete Hegseth on Tuesday. Photo: EPA-EFE
  1. The United States will take back the Panama Canal from Chinese influence, US Defence Secretary Pete Hegseth said on Tuesday during a visit to the Central American nation.
  2. Hegseth, following talks with Panama’s government, vowed to deepen cooperation and said China would not be allowed to “weaponize” the canal by using Chinese firms’ commercial relationships for espionage.
“Together, we will take back the Panama Canal from China’s influence,” Hegseth said.
“China-based companies continue to control critical infrastructure in the canal area,” Hegseth said.
“That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable.”
Panama’s President José Raúl Mulino (left) holds a meeting with US Secretary of Defence Pete Hegseth at Las Garzas Presidential Palace in Panama City on Tuesday. Photo: Panamanian Presidency via AFP
Panama’s President José Raúl Mulino (left) holds a meeting with US Secretary of Defence Pete Hegseth at Las Garzas Presidential Palace in Panama City on Tuesday. Photo: Panamanian Presidency via AFP
Hegseth met with Mulino for two hours Tuesday morning before heading to the Vasco Nunez de Balboa Naval Base, which had previously been the US Rodman Naval Station.
 
On the way, Hegseth posted a photo of the two men laughing to social media and wrote that it was an honour speaking with Mulino.
“You and your country’s hard work is making a difference. Increased security cooperation will make both our nations safer, stronger and more prosperous,” he wrote.
 
The visit comes amid tensions over Trump’s repeated assertions that the United States is being overcharged to use the Panama Canal and that China has influence over its operations. Panama has denied those allegations.

After Hegseth and Mulino spoke by phone in February, the US State Department published on social media that an agreement had been reached to not charge US warships to pass through the canal. Mulino publicly denied there was any such deal.

  • Trump has gone so far as to suggest the US never should have turned the canal over to Panama and that maybe Washington should take it back.
  • The China concern was provoked by the Hong Kong consortium holding a 25-year lease on ports at either end of the canal. The Panamanian government announced that lease was being audited and late Monday concluded that there were irregularities.
The Hong Kong consortium, however, had already announced that CK Hutchison would be selling its controlling stake in the ports to a consortium including BlackRock Inc., effectively putting the ports under American control once the sale is complete.

Rubio told Mulino during his visit that Trump believed that China’s presence in the canal area may violate a treaty that led the United States to turn the waterway over to Panama in 1999. That treaty calls for the permanent neutrality of the American-built canal.

Riot police stand next to a US flag left by demonstrators in Panama City during a protest against US Secretary of Defence Pete Hegseth’s visit on Thursday. Photo: AFP
Riot police stand next to a US flag left by demonstrators in Panama City during a protest against US Secretary of Defence Pete Hegseth’s visit on Thursday. Photo: AFP
Mulino has denied that China has any influence in the operations of the canal. In February, he expressed frustration at the persistence of the narrative.
“We aren’t going to speak about what is not reality, but rather those issues that interest both countries.”
  1. The United States built the canal in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. 
  2. Washington relinquished control of the waterway to Panama on December 31, 1999, under a treaty signed in 1977 by President Jimmy Carter.
“I want to be very clear, China did not build this canal,” Hegseth said on Tuesday.

“China does not operate this canal and China will not weaponise this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective and most lethal fighting force in the world.”

Reuters and Associated Press
 

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