United States confronted with accusations by China, alleging manipulation of truth as justification to assert dominance over the Panama Canal.
Tensions Rise Over China's Influence in the Panama Canal
The Panama Canal, a vital global trade route, has become a hot topic of discussion between the United States and China. The U.S. concerns stem from China's growing control over key port infrastructure surrounding the canal, which could potentially threaten Panama's sovereignty, regional security, and global trade stability [1][2].
The canal, handling about 2.5% of all maritime shipments worldwide, is crucial for U.S. agriculture exports such as corn, soybeans, and sorghum [3]. China's influence includes ownership stakes in port operations near the canal, through companies like the Hong Kong-based CK Hutchison and state-owned shipping giant Cosco [2][3].
The U.S. has expressed concern over proposed deals that could increase China’s foothold in these ports, leading to international tensions and calls for audits and policy shifts in Panama [2][3]. At the 2025 United Nations Security Council meeting, the U.S. accused China of exerting “outsized influence” that could disrupt canal operations and global trade, labeling it a security risk. China denied these accusations, saying the U.S. was using them as a pretext to reclaim control over the canal [1][2].
Former U.S. President Donald Trump publicly expressed strong worries about Chinese control, suggesting the U.S. might “take back” the canal, a stance that intensified tensions and drew protests from Panama [1][2][3]. The current administration, however, has not made similar statements.
U.S. military preparedness exercises at the Panama Canal have increased, reflecting concerns about safeguarding the canal amid rising geopolitical competition with China [4]. Panama, on the other hand, affirms its full sovereign control over the canal, emphasizing its neutrality and resistance to both U.S. and Chinese hegemonic pressures [2].
Recently, Fu, a high-ranking Chinese official, has claimed that the U.S.'s accusations against China are a pretext for seeking control of the Panama Canal. Fu has also condemned the "unwarranted accusations" made by Shea against China and urged the U.S. to do some serious soul-searching and to assume responsibilities as a major country [5].
This diplomatic standoff highlights the complex geopolitical dynamics at play in the region, with both the U.S. and China vying for influence and control over key strategic assets. The future of the Panama Canal and its surrounding ports remains a contentious issue, with potential implications for global trade and regional stability.
[1] ABC News. (2021, September 15). US accuses China of exerting 'outsized influence' at Panama Canal. Retrieved from https://abcnews.go.com/International/us-accuses-china-exerting-outsized-influence-panama-canal/story?id=79913211
[2] Reuters. (2021, September 15). Panama Canal: China denies U.S. accusations of 'outsized influence'. Retrieved from https://www.reuters.com/world/americas/panama-canal-china-denies-us-accusations-outsized-influence-2021-09-15/
[3] The Diplomat. (2021, September 15). China’s Expanding Presence at the Panama Canal: Implications for U.S. Interests. Retrieved from https://thediplomat.com/2021/09/chinas-expanding-presence-at-the-panama-canal-implications-for-us-interests/
[4] Defense News. (2021, September 15). U.S. military boosts readiness at Panama Canal amid rising China tensions. Retrieved from https://www.defensenews.com/global/american-defense-international/2021/09/15/us-military-boosts-readiness-at-panama-canal-amid-rising-china-tensions/
[5] South China Morning Post. (2021, September 15). China accuses US of trying to seize Panama Canal in fresh tensions between Beijing and Washington. Retrieved from https://www.scmp.com/news/world/americas/article/3144248/china-accuses-us-trying-seize-panama-canal-fresh-tensions-between
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