Hegseth Warns China Over Panama Canal Access/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. Defense Secretary Pete Hegseth accused China of threatening the Panama Canal’s security, triggering a sharp rebuke from Beijing. Speaking in Panama City, Hegseth announced new U.S.-Panama defense cooperation and criticized Chinese control of nearby ports. China called the claims “sensationalist” and accused the U.S. of geopolitical meddling.
China-U.S. Clash Over Panama Canal Control: Quick Looks
- Hegseth’s Warning: China threatens Panama Canal security through port control, U.S. will respond.
- Beijing’s Response: China accuses U.S. of blackmail and geopolitical manipulation.
- New U.S. Dock: Ribbon-cutting at U.S.-funded naval base dock marks deeper defense ties.
- Port Controversy: Hong Kong firm selling canal-adjacent ports to BlackRock-led consortium.
- Joint Statement: U.S. and Panama agree to explore toll adjustments for U.S. vessels.
- Sovereignty Tension: Spanish version affirms Panama’s canal control; English version omits it.
- Trump’s Tariff Factor: Visit follows Trump’s repeated complaints about canal fees and China’s role.
- Treaty Implications: U.S. hints China’s presence may violate 1977 canal neutrality agreement.
- Canal Background: U.S. built canal in early 1900s, handed control to Panama in 1999.
- Military Messaging: Hegseth says U.S. will keep canal secure with “most lethal force.”
Hegseth Warns China Over Panama Canal Access
Deep Look
PANAMA CITY — April 8, 2025 — Defense Secretary Pete Hegseth sparked a diplomatic flare-up Tuesday after asserting that China poses an ongoing threat to the security of the Panama Canal. In a speech following a meeting with Panamanian President José Raúl Mulino, Hegseth pledged deeper U.S.-Panama security cooperation and vowed that the United States would not allow any foreign power — especially China — to compromise control of the strategic waterway.
“China-based companies continue to control critical infrastructure in the canal area,” Hegseth warned during the opening of a new U.S.-financed dock at the Vasco Nuñez de Balboa Naval Base. “This gives China the potential to conduct surveillance and puts both Panama and the United States at risk.”
The remarks triggered a fiery response from the Chinese Embassy in Panama, which accused the U.S. of “blackmail” and said decisions about port operations are Panama’s sovereign right.
“Who represents the real threat to the Canal? People will make their own judgment,” the embassy said in a statement.
Escalating U.S.-China Tensions
The controversy centers on a Hong Kong consortium, CK Hutchison, which currently holds a long-term lease on major ports at both ends of the canal. The company has agreed to sell its stake to a group including BlackRock Inc., shifting control to U.S.-aligned interests. Still, Hegseth’s concerns reflect broader U.S. unease about Beijing’s global economic footprint.
Trump administration officials argue that China’s presence violates the spirit of the 1977 treaty under which the U.S. transferred the canal to Panama. That treaty guarantees the canal’s permanent neutrality and free access for all nations.
“China did not build this canal. China does not operate this canal. And China will not weaponize this canal,” Hegseth declared.
Joint Statement Raises Questions
After a two-hour meeting between Hegseth and Mulino, the two governments released a joint statement pledging enhanced cooperation on canal security. Notably, it included language suggesting the U.S. and Panama will work on a mechanism to adjust canal tolls for U.S. ships — something Trump has long demanded.
However, discrepancies between the English and Spanish versions of the statement raised eyebrows. The Spanish version included a line recognizing Panama’s “inalienable sovereignty” over the canal — a phrase omitted from the English version. Panama’s Foreign Ministry did not clarify the omission.
Backdrop of Strategic Concerns
The U.S. built the canal in the early 20th century and operated it until December 31, 1999. Since then, Washington has kept close tabs on its operations, especially as China has increased its commercial influence in Latin America.
In February, Secretary of State Marco Rubio suggested that China’s growing footprint near the canal could violate treaty terms. Mulino, for his part, has repeatedly denied that China plays any role in canal operations and criticized what he called U.S. “narratives divorced from reality.”
Mulino initially denied Trump’s claim that a deal had been made to exempt U.S. warships from canal tolls. Tuesday’s joint statement suggests some movement toward accommodating U.S. demands, though specifics remain vague.
Geopolitical Chessboard
Hegseth’s visit also comes as the Trump administration aims to project U.S. power in Latin America and counter growing Chinese influence across strategic infrastructure. His presence at the former U.S. Rodman Naval Station, now a Panamanian base, signals a possible uptick in military cooperation.
“Together with Panama in the lead, we will keep the canal secure and available for all nations,” Hegseth said.
The timing of Hegseth’s remarks — just one day after Panama concluded an audit into the Chinese-held port leases, citing “irregularities” — adds fuel to the geopolitical fire.
Beijing views U.S. actions in Panama as part of a broader effort to limit its global economic ambitions. In its statement, the Chinese Embassy dismissed the U.S. concern over “theoretical threats” as a smokescreen for protecting American interests.
The canal, which sees nearly 14,000 transits per year, remains a vital artery for global commerce. With shipping delays, drought conditions, and geopolitical rivalries converging, control over the 50-mile waterway is becoming a flashpoint once again.
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