Gordon Chang, an expert on U.S.-China relations, recently raised concerns about China’s influence over the Panama Canal. He warned that Beijing could create significant challenges for companies involved in the sale of the canal’s ports, specifically the deal between Hong Kong-based CK Hutchison and U.S.-based BlackRock.
Chang’s remarks come at a critical time as U.S. Defense Secretary Pete Hegseth is set to meet with leaders in Panama next week. This meeting is part of the Trump administration’s efforts to strengthen U.S. ties with Panama and address national security concerns regarding Chinese involvement in the region.
During a visit to Panama in February, Secretary of State Marco Rubio emphasized that the U.S. would not allow the Chinese Communist Party to expand its control over the Panama Canal area. This statement reflects growing worries about China’s strategic moves in Central America.
The Pentagon confirmed that Hegseth will participate in the 2025 Central American Security Conference, where discussions will focus on enhancing partnerships with Panama and other Central American nations. This conference aims to bolster U.S. influence and security in the region, especially amid rising tensions with China.
In a related development, BlackRock announced a $23 billion deal to acquire the ports of Cristobal and Balboa in Panama, along with other ports across 23 countries. This significant investment has raised alarms about potential Chinese interference, with experts warning that Beijing could leverage its influence to disrupt the sale.
Panama’s President, José Raúl Mulino, has publicly denied that China has any control over the canal. He criticized Trump’s comments about potentially reacquiring the canal, which the U.S. built and handed over to Panama in the 1970s.
As the situation unfolds, the Panama Canal remains a focal point in U.S.-China relations, with both nations vying for influence in this strategically vital area. The upcoming meetings and negotiations will be crucial in determining the future of U.S. interests in Panama and the broader region.