This article examines President Donald Trump's controversial statement regarding Chinese involvement in the Panama Canal, exploring its historical ownership, operational management, and the geopolitical implications of China's investments in the region.
Does China Control the Panama Canal? Trump's Claims Under Scrutiny
Does China Control the Panama Canal? Trump's Claims Under Scrutiny
In his inaugural address, President Trump asserted that China operates the Panama Canal, claims that have been widely challenged by authorities in both Panama and China.
During his inaugural speech, President Donald Trump claimed that "China is operating the Panama Canal," asserting that the waterway should be under U.S. control, not Panamanian governance. Spanning 51 miles across Panama, the canal serves as a crucial maritime link, handling around 5% of the world's maritime trade annually.
Trump's comments aren't isolated incidents; they echo statements made previously, including a Christmas Day social media post where he described the "wonderful soldiers of China" as "lovingly, but illegally, operating the Panama Canal." Officials from Panama and China swiftly rebuffed these allegations, with Panamanian President José Raúl Mulino labeling Trump's claims as "nonsense." He asserted that there is no foreign interference in the administration of the canal, which has been overseen by the Panama Canal Authority, a Panamanian government agency, since its full transfer from U.S. control in 1999.
Historically, the canal's construction was largely an American effort following a failed attempt by the French. Control transitioned to Panama following a treaty signed in 1977 by then U.S. President Jimmy Carter, which has been described by Trump as "foolish." Provisions of the treaty guarantee the canal's neutrality but afford the U.S. the right to intervene militarily in case of perceived threats.
Despite Trump's claims, no credible evidence supports the assertion that the Chinese government is involved in the canal's operation. However, China's economic footprint in Panama has grown significantly, with Chinese entities accounting for 21.4% of the cargo volume transiting the canal between October 2023 and September 2024, making it the second-largest user after the U.S.
Chinese investments extend beyond the canal itself, with significant stakes in adjacent ports like Balboa and Cristóbal, managed by Hutchison Port Holdings, a company linked to Hong Kong billionaire Li Ka-shing. These ports, operating since 1997, allow for the flow of critical shipping information, raising concerns in Washington about potential Chinese leverage over maritime routes in a strained economic relationship between the U.S. and China.
Experts highlight that U.S. indifference to the management of these ports has allowed companies like Hutchison to gain a foothold in an area of strategic significance. Moreover, China's ambitions aren't limited to ports; the nation aims to expand its influence in the region through investments in infrastructure and projects, exemplified by Panama's participation in China’s Belt and Road Initiative after severing diplomatic ties with Taiwan in 2017.
In conclusion, while Trump's claim that China operates the Panama Canal lacks verifiable evidence, the growing Chinese economic presence in the region aligns with a broader strategy to strengthen its position in Latin America. The situation exemplifies the complexities of international relations and trade that redefine global power dynamics.
