US Defence Secretary Pete Hegseth declared China poses a persistent threat to the Panama Canal’s security.
He pledged that the US and Panama will jointly defend the waterway from foreign interference.
At a ceremony for a new US-funded dock at the Vasco Nuñez de Balboa Naval Base, Hegseth underlined this message.
He emphasized that neither China nor any other country will gain operational control over the canal.
Hegseth noted that US-Panama security ties have strengthened significantly in recent weeks.
He stressed the cooperation now exceeds any joint efforts seen in previous decades.
Foreign Infrastructure Raises Alarm in Washington
Hegseth warned about the risks posed by Chinese infrastructure near the canal.
He pointed to ports at both ends of the waterway managed by a Hong Kong-based consortium.
That consortium is transferring its stake to a new group including the American firm BlackRock Inc.
He explained that China-linked entities still oversee sensitive areas and could gather intelligence in Panama.
He claimed such surveillance compromises sovereignty and weakens security for both Panama and the US.
He cited President Trump’s view that the situation remains intolerable.
Hegseth spent two hours with Panamanian President José Raúl Mulino before the naval base event.
He later posted a photo online showing both leaders smiling, praising their conversation and cooperation.
Trump Criticizes Canal Deal, Panama Rejects Claims
Hegseth’s visit followed Trump’s claims that the US overpays to access the canal.
Trump also asserted that China holds sway over its operations.
The Panamanian government rejected those accusations and denied any Chinese influence.
After a February call between Hegseth and Mulino, the US State Department announced a warship transit deal.
Mulino publicly denied the existence of such an agreement.
Trump questioned the original handover of the canal to Panama in 1999.
He even suggested the US should reclaim it due to security concerns.
The Hong Kong consortium’s 25-year port lease prompted renewed scrutiny from Panamanian authorities.
This week, Panama concluded that the lease involved irregularities and began auditing the deal.
The consortium confirmed that CK Hutchison will sell its port control to a BlackRock-led group.
Secretary of State Marco Rubio told Mulino that China’s role might breach the neutrality treaty.
That treaty requires the canal to remain permanently neutral under Panamanian control.
Mulino firmly denied that China influences canal operations in any capacity.