Former US President Donald Trump has again rekindled the controversy around the Panama Canal. He continued stating that it was China operating the vital waterway. President Trump has since described the canal as “a silly present [for Panama] and never should have been given,” to which he hinted at recovering the waterway. At the launch of his campaign, then-US President candidate Trump declared “without evidence of China operating the Panama Canal as it was them and not him, who ceded it to Panama, before threatening to “take it back” as well
History and Control of the Panama Canal
The 82-kilometer (51-mile) Panama Canal, built in the early 20th century by the United States to connect the Atlantic and Pacific Oceans, was transferred to Panama under the terms of the 1977 Torrijos-Carter Treaties, ensuring neutrality of the canal. In the present, the canal is owned by Panama and is most crucial to the U.S. as a client, as it makes up about three-quarters of the cargo passing yearly through the canal. China is a far second in this particular use.
Chinese in Panama
Trump seems to ground his assertions in a Hong Kong-based company called Hutchison Ports, which manages two ports located adjacent to the canal on either side-the Pacific side is Balboa, and the Atlantic side is Cristobal. Those concessions were done in 1996 and do not amount to an ownership agreement. The port is operated on agreements the Panamanian government has agreed to with this company, which does not directly allow China to operate the canal itself.
Hutchison Ports is a subsidiary of CK Hutchison Holdings-the business empire belonging to Hong Kong billionaire Li Ka-shing. Studies found that U.S. State Department said, no evidence of this sort can be found about the Chinese Government controlling the operation of the canal through Hutchison Ports
Offical Reactions
China has denied claims that it has any interest in managing the canal. Mao Ning, a spokesperson for China’s Foreign Ministry, said recently, “China does not participate in the management and operation of the canal and has never interfered in the affairs of the canal.” Panamanian President Jose Raul Mulino has also dismissed allegations of foreign interference in the canal’s affairs, arguing that the canal operates on the principle of neutrality.
In response to President Trump’s rhetoric, the authorities in Panama have launched an audit of Hutchison Ports to make sure that the ports are compliant with concession agreements. Hutchison Ports reiterates commitment to full compliance and transparency with the authorities in Panama. Previous audits made no findings against the company.
Geopolitics
Some U.S. officials have been critical of the strategic significance of the canal and a Chinese company running a facility near it. Opponents claim that Beijing’s increasing political and economic presence in Latin America, such as Panama’s participation in China’s “Belt and Road” initiative, has the potential to increase security threats. Many see the Belt and Road Initiative as a tool of economic imperialism, where China gains an advantage over smaller and developing nations.
According to experts, Trump’s statements are more about limiting China’s influence in the region than about an immediate threat. Benjamin Gedan, director of the Wilson Center’s Latin America program, said that while Beijing could theoretically exert pressure on Hutchison Ports, the likelihood remains speculative.
Motivations Behind Trump’s Statements
The analysts said the accusations aimed at discouraging Panama from drawing closer to China. Euclides Tapia, a professor of international relations at the University of Panama, dismissed the accusations as only a “false argument” in forcing Panama to restrict its relations with Beijing.
The expert from University of Essex in the matters of international relations Natasha Lindstaedt assessed Trump’s wording as a “tool of bargaining or diversion or both, or meant to make change regional geopolitics”.
While Trump’s claims about Chinese control of the Panama Canal lack evidence, they highlight broader concerns about China’s growing global influence. The Panama Canal remains firmly under Panamanian control, operating as a neutral and vital artery of international trade. The ongoing audit of Hutchison Ports underscores Panama’s commitment to transparency and accountability amid geopolitical tensions.
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