PANAMA CITY — U.S. Defense Secretary Pete Hegseth stated on Tuesday that the Panama Canal is facing ongoing threats from China, but assured that the United States and Panama will work together to maintain its security.
Hegseth’s statement attracted a strong response from the Chinese government, which commented, “Who represents the real threat to the Canal? People will make their own judgement.”
Addressing a ceremony for a new U.S.-funded dock at the Vasco Nuñez de Balboa Naval Base, following a meeting with Panama President José Raúl Mulino, Hegseth assured that the U.S. would not allow China or any other country to jeopardize the canal’s operations.
“The United States and Panama have recently enhanced our defense and security cooperation more than we have in decades,” he remarked.
Hegseth also mentioned ports at either end of the canal, controlled by a Hong Kong consortium, which plans to sell its majority stake to a consortium including BlackRock Inc. He noted that “China-based companies continue to control critical infrastructure in the canal area,” which could enable surveillance activities across Panama. This situation, he said, undermines the security, prosperity, and sovereignty of both Panama and the United States, a point previously highlighted by President Donald Trump.
Hegseth and Mulino met for two hours on Tuesday morning before heading to the naval base. During their meeting, they discussed strengthening security cooperation to benefit both nations.
Later that day, Mulino and Hegseth issued a joint statement that touched on the tolls the United States pays for its ships using the canal. They announced plans to work within the canal’s framework to establish a mechanism for compensating these payments.
The Spanish version of the statement included an acknowledgment by Secretary Hegseth of Panama’s leadership and sovereignty over the Panama Canal and its adjacent areas, which was absent in the English version.
The visit comes amid tensions arising from Trump’s claims that the U.S. is overcharged for using the Panama Canal and that China unduly influences its operations, accusations that Panama denies.
Following the meeting, the Chinese Embassy in Panama criticized the U.S. on X, alleging that the U.S. is using “blackmail” to serve its own interests and does not have the right to interfere with Panama’s sovereign decisions about business partnerships.
The controversy was exacerbated by a 25-year lease held by a Hong Kong consortium over ports at the canal’s ends. The Panamanian government completed an audit of the lease late Monday, finding irregularities. Despite this, the Hong Kong consortium has announced plans to sell its controlling stake to a BlackRock Inc. led consortium, potentially placing the ports under American control.
U.S. Secretary of State Marco Rubio warned Mulino in February that China’s presence in the canal might breach the treaty that transferred control of the waterway to Panama in 1999. The treaty guarantees the canal’s permanent neutrality. Mulino has denied any Chinese influence over the canal’s operations.
The U.S. constructed the canal in the early 1900s to enable the transit of commercial and military vessels. Washington ceded control to Panama on Dec. 31, 1999, under a treaty signed by President Jimmy Carter in 1977.
Hegseth emphasized, “China did not build this canal. China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective, and most lethal fighting force in the world.”
Source: https://time.com/7275932/hegseth-panama-canal-china-threat-security-beijing-response/
