Mon Feb 03 04:28:10 UTC 2025: ## US Demands Panama Curb Chinese Influence Over Canal, Threatens Retaliation
**Panama City, Panama – February 3, 2025** – US Secretary of State Marco Rubio delivered a stark warning to Panama on Sunday, demanding the immediate reduction of what President Donald Trump considers undue Chinese influence over the Panama Canal. Rubio’s visit, his first foreign trip as Secretary of State, included a face-to-face meeting with Panamanian President José Raúl Mulino.
While Mulino downplayed the threat of US military action, Rubio, speaking on behalf of President Trump, asserted that China’s presence in the canal area violates the 1999 treaty that transferred control to Panama. The State Department issued an unusually blunt statement declaring the current situation “unacceptable” and hinting at potential US actions to protect its perceived rights under the treaty.
This strong-arm tactic is consistent with Trump’s aggressive foreign policy approach, which recently included the imposition of significant tariffs on Canada and Mexico, sparking a trade war.
President Mulino, while calling the talks “respectful,” stated that Panama would not renew its agreement with China’s Belt and Road Initiative upon its expiration. He also emphasized Panama’s commitment to maintaining control of the canal and keeping it open to all nations.
Protests erupted in Panama City during Rubio’s visit, with demonstrators chanting against US intervention and asserting Panamanian sovereignty.
Rubio also pressed Panama on curbing illegal immigration, an issue central to the Trump administration’s agenda. This comes despite a US foreign aid freeze impacting programs targeting migration and crime in Central America. Defense Secretary Pete Hegseth announced a visit to the US-Mexico border to oversee immigration enforcement efforts.
Concerns about Chinese influence center around Hutchison Ports, a Hong Kong-based company managing port facilities at both ends of the canal. An audit of a recently extended contract with the company is underway, potentially leading to a rebidding process. However, it remains uncertain whether simply transferring the concession to a US or European company would satisfy the Trump administration’s demands.
Rubio’s trip continues to other Central American countries amid a US foreign aid freeze, although some waivers for critical programs have been approved.
First Piper 