Beijing Fires Back at Hegseth’s Controversial Panama Canal ‘Threat’ Remarks | CNN

China’s Influence and the Panama Canal: A Growing Concern

Recently, U.S. Defense Secretary Pete Hegseth spoke out about the Panama Canal, highlighting fears about Chinese influence in the region. He emphasized that the U.S. and Panama are committed to keeping the canal secure, a vital trade route for global shipping.

Hegseth’s comments sparked a sharp response from China, questioning who truly poses a threat to the canal. This back-and-forth reflects growing tensions between the U.S. and China over strategic interests in Latin America.

At an event at the Vasco Nuñez de Balboa Naval Base, Hegseth described efforts to strengthen U.S.-Panama defense cooperation more than ever before. He expressed concerns over a Hong Kong consortium managing ports at both ends of the canal, which is in the process of selling its stake to a group that includes BlackRock Inc. This move raises alarms about Chinese companies controlling key infrastructure.

“China-based companies are in a position to conduct surveillance, making both Panama and the United States less secure,” Hegseth said. These worries aren’t unfounded. According to a recent study, 45% of Americans feel that China’s economic presence in Latin America undermines U.S. interests.

Hegseth’s meeting with Panamanian President José Raúl Mulino was significant. They discussed various topics, including tolls paid for crossing the canal. The two nations aim to clarify this process, which has been a source of disagreement. A joint statement after their talks suggested they would work together on compensation protocols concerning toll payments.

Responses to the meeting were mixed. The Chinese Embassy in Panama criticized the U.S., labeling Washington’s actions as blackmail. They argued that Panama’s partnerships should not be influenced by U.S. interests. This sentiment resonates with many Panamanians who feel the U.S. has too much say in their affairs, even decades after handing over control of the canal.

Historically, the Panama Canal has been a point of contention. The U.S. constructed the canal in the early 1900s to facilitate shipping. After years of U.S. control, the canal was turned over to Panama in 1999 under a treaty signed by President Jimmy Carter. This agreement emphasizes Panama’s sovereignty and the canal’s neutrality, yet the conversation about foreign influence remains relevant.

Mulino, reflecting on the situation, has repeatedly denied any significant Chinese influence over the canal’s operations. He has criticized ongoing narratives that promote this notion, focusing instead on fostering a productive relationship between Panama and the U.S.

As the geopolitical landscape evolves, the situation at the Panama Canal will continue to draw attention. With trade routes becoming more critical, the dynamics between the U.S., Panama, and China will shape future developments in the region.

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