Tue Apr 08 22:48:00 UTC 2025: **US and Panama Strengthen Ties Amid Concerns Over China’s Influence on Panama Canal**
Panama City, April 9, 2025 – U.S. Secretary of Defense Pete Hegseth reaffirmed the U.S. commitment to securing the Panama Canal during a visit to Panama on Tuesday. Hegseth cited ongoing concerns about China’s influence in the region, specifically referencing Chinese companies’ control of critical infrastructure near the canal. While acknowledging a recent sale of a controlling stake in ports at either end of the canal from a Hong Kong consortium to a consortium including BlackRock Inc., effectively putting the ports under American control, Hegseth emphasized the need for continued vigilance.
Hegseth’s visit follows recent tensions sparked by U.S. President Donald Trump’s accusations that the U.S. is overcharged for canal usage and that China exerts undue influence on its operations – claims Panama has consistently denied. The visit also comes after a February phone call between Hegseth and Panamanian President José Raúl Mulino, which reportedly resulted in an agreement (denied by Mulino) to waive canal tolls for U.S. warships.
Hegseth’s statements underscored a strengthening of U.S.-Panama defense and security cooperation, including a ribbon-cutting ceremony for a new U.S.-funded dock at the Vasco Nuñez de Balboa Naval Base. He assured that the U.S. would prevent any country, including China, from jeopardizing the canal’s operations. He further stated that the U.S. and Panama will work together to maintain security, prosperity, and sovereignty in the region. President Mulino has repeatedly dismissed assertions of Chinese influence over canal operations. The Panamanian government recently concluded an audit of the lease held by the Hong Kong consortium, citing irregularities.
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