Summary:
- Pentagon Chief Pete Hegseth pledges to end China’s influence over Panama Canal during a landmark visit to Panama.
- US and Panama to deepen military and security cooperation as part of new strategic alignment.
- China’s commercial presence around the canal seen as a potential espionage threat by the US.
- Panama’s exit from China’s Belt and Road Initiative and recent port acquisition by US firm BlackRock signal a shift in regional power dynamics.
Detailed Report:
In a major geopolitical shift, US Secretary of Defense Pete Hegseth announced Washington’s intent to reclaim influence over the Panama Canal, ending what he described as China’s growing strategic foothold in one of the world’s most vital trade arteries. Speaking after a historic visit to Panama, Hegseth emphasized the canal’s critical importance to global commerce and US national security.
The defense chief’s visit marked the first high-level Pentagon trip to Panama in decades, and came amidst mounting concerns in Washington over China’s infrastructure investments around the canal. These include port operations and construction contracts with Chinese state-backed firms, which the US sees as a potential gateway for surveillance and influence.
After a closed-door meeting with Panamanian President Jose Raul Mulino, Hegseth reaffirmed US commitment to help secure the canal. “China did not build this canal. China does not operate this canal, and China will not weaponize this canal,” Hegseth declared. “Together with Panama in the lead, we will keep the canal secure and available for all nations.”
The visit is being seen as a significant step in reshaping US-Panama relations, especially as Panama recently announced its formal withdrawal from China’s Belt and Road Initiative (BRI). This decision, aligned with Hegseth’s remarks, marks a notable pivot in Panama’s foreign policy and a strategic win for the US in curbing Beijing’s global influence.
To bolster this shift, US asset manager BlackRock led a deal to acquire most of the $22.8 billion global port business of Hong Kong-based CK Hutchison, including critical ports at both ends of the Panama Canal. The move was celebrated by President Trump as an example of “reclaiming the Panama Canal”, with speculation that the deal was backed by strategic intent as much as financial gain.
The Pentagon is now expected to increase its military footprint and security collaboration with Panama, a dynamic not seen since the US formally handed over control of the canal to Panama in 1999. Hegseth’s visit and statements suggest that US naval and intelligence activities in the region will grow under the guise of mutual cooperation.
Strategic experts warn that in the event of a military conflict in Asia, control over the Panama Canal could be decisive. The canal allows US naval fleets to transition rapidly between oceans. Analysts say that even if China cannot directly block US movements, its presence near the canal could facilitate maritime surveillance and logistical disruption.
President Mulino’s role has been pivotal in this realignment. Besides his stance on the BRI, he has cooperated with the Trump administration on migration enforcement and acceptance of US deportation flights, showing alignment with broader US strategic goals.
While China has pushed back, launching an antitrust probe into the BlackRock-CK Hutchison deal, the momentum appears to be shifting. The US is capitalizing on the opportunity to reinforce its traditional dominance in the Western Hemisphere, leveraging Panama’s strategic location and willingness to recalibrate its foreign policy.
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