Daijiworld Media Network- Panama
Panama City, Apr 9: In a visit that has reignited global focus on the geopolitics of the Panama Canal, US Defense Secretary Pete Hegseth declared that the United States will “take back” the strategic waterway from growing Chinese influence, while reaffirming support for Panama’s sovereignty and security leadership.
Hegseth, the first US defense chief in decades to visit Panama, made the strong remarks after meeting with President Jose Raul Mulino and other top officials. “China did not build this canal. China does not operate this canal, and China will not weaponise this canal,” Hegseth stated, addressing US troops and Panamanian security forces at a renovated pier in Panama City.
Calling the canal “key terrain” for global trade and strategic mobility, Hegseth emphasized deepening cooperation to ensure the waterway remains neutral and secure. The US has raised concerns about China's commercial foothold in Panama, including infrastructure projects and port operations, which Washington fears could enable espionage or undue influence.
More than 40% of the United States' container traffic — valued at approximately $270 billion annually — moves through the canal, which also handles over two-thirds of daily interoceanic vessel movement. The strategic relevance of the canal has led to increased scrutiny over foreign investments in its vicinity.
Hegseth’s visit comes amidst a broader push by the Trump administration to reassert US influence in Central America. President Trump, who has long criticized the 1999 handover of the canal to Panama, has not ruled out the use of military options to “reclaim” US interests in the region — a stance that has caused unease among Panamanians.
However, Hegseth struck a more calibrated tone, repeatedly stressing Panama’s leadership role in managing the canal. “Together, with Panama in the lead, we will keep the canal secure and available for all nations,” he said, in a nod to Panamanian sensitivities.
President Mulino, who recently announced Panama’s withdrawal from China’s Belt and Road Initiative, has emerged as a willing partner in Washington’s efforts to counter Beijing’s presence. His administration has also cooperated with the US on regional migration controls, including deportation flights and efforts to restrict movement through the Darien Gap.
During his visit, Hegseth toured the Miraflores lock of the canal and former US military sites, expressing hopes for more joint engagements, including reopening a jungle survival training center. “In reality or in perception, the communist Chinese have had designs on more control of this canal, and to that we say: Not on our watch,” Hegseth declared.
China, through its embassy in Panama, strongly refuted the US narrative, stating that it has never interfered with the canal’s operations. “The only time the canal has been disrupted was during a US invasion,” the embassy noted, questioning who truly poses a threat to the canal’s neutrality.
Meanwhile, experts have pointed out that while the US has legitimate concerns regarding Chinese espionage, its confrontational rhetoric may undermine diplomatic ties. Former US ambassador to Panama, John Feeley, criticized the Trump administration’s approach, saying there is no violation of the canal’s neutrality treaty. “What’s not legitimate is the bullying,” he remarked.
Despite ongoing debates, the Panama Canal Authority, under President Mulino, has reiterated its commitment to fair and neutral administration of the canal. “The canal is, and will continue to be, Panamanian,” Mulino affirmed.
The next phase of this geopolitical tug-of-war may unfold in courtrooms and corporate boardrooms, as China prepares to scrutinize a $22.8-billion ports deal involving US firm BlackRock, which Trump has lauded as part of efforts to "reclaim" the canal. As global powers jostle over influence, Panama remains at the center of a 21st-century strategic crossroads.