Trump Threatens Action Over Chinese ‘Influence’ In Panama Canal, Warns Of ‘Powerful’ Consequences

International

oi-Amit Vasudev

Published: Monday, February 3, 2025, 11:23 [IST]

On
Sunday,
US
President
Donald
Trump
made
a
bold
statement
regarding
the
Panama
Canal,
claiming
that
“something
very
powerful
is
going
to
happen
soon” over
the
Chinese
“influence”
and
control
of
the
critical
waterway.

He
emphasised
that
while
the
canal
was
not
handed
over
to
China,
a
breach
of
agreement
had
occurred.

The
Panama
Canal,
which
Trump
has
referred
to
as
a
modern
“wonder
of
the
world,” was
constructed
by
the
US
and
opened
in
1914,
at
the
cost
of
many
lives,
primarily
those
of
labourers
from
the
Caribbean,
including
Barbados
and
Jamaica.

Upon
returning
to
the
White
House,
newly
sworn-in
President
Trump
threatened
to
seize
control
of
the
canal,
which
had
been
handed
back
to
Panama
in
1999
under
President
Jimmy
Carter,
asserting
that
it
was
now
being
operated
by
Beijing.

Trump
stated,
“China’s
running
the
Panama
Canal…
it
was
not
given
to
China…
But
they
violated
the
agreement
and
we’re
going
to
take
it
back
or
something
very
powerful
is
going
to
happen.”

US
Secretary
of
State
Marco
Rubio,
a
known
critic
of
China,
warned
Panama’s
President
José
Raúl
Mulino
on
Sunday,
stating
that
Washington
would
“take
measures
necessary” if
Panama
did
not
take
immediate
action
to
end
China’s
control
over
the
vital
waterway.

President
Mulino,
however,
expressed
that
he
was
not
concerned
about
a
potential
US
invasion
and
proposed
talks
on
the
matter.

During
his
first
overseas
visit
as
the
US
Secretary
of
State,
Rubio
toured
the
canal
with
its
Panamanian
administrator,
while
South
Korean
and
Marshall
Islands-flagged
vessels
passed
through
the
strategic
passage.

Following
the
tour,
Rubio
met
with
Mulino,
where
he
“made
clear
that
this
status
quo
is
unacceptable” and
insisted
that
without
immediate
changes,
the
US
would
take
necessary
measures
to
protect
its
rights
under
the
treaty,
as
stated
by
State
Department
spokeswoman
Tammy
Bruce.

Mulino,
in
turn,
indicated
that
his
meeting
with
Rubio
was
respectful
and
cordial.
He
showed
willingness
to
review
certain
Chinese
business
operations
in
Panama,
including
a
significant
25-year
concession
with
Hong
Kong-based
CK
Hutchison
Holdings,
renewed
in
2021
for
managing
the
ports
at
both
ends
of
the
canal.
This
concession
is
under
audit,
according
to
a
Reuters
report.

The
contract
has
been
scrutinised
by
US
lawmakers
and
officials
as
an
example
of
China’s
expanding
influence
in
Panama,
which
they
claim
contravenes
a
neutrality
treaty
signed
by
both
countries
in
1977.

However,
the
Panamanian
government
and
some
experts
reject
this
view,
particularly
as
the
ports
in
question
are
not
part
of
the
Panama
Canal’s
operations,
which
are
overseen
by
the
Panama
Canal
Authority,
an
autonomous
agency
of
the
Panamanian
government.

President
Mulino
also
stated
that
the
broad
agreement
between
Panama
and
China,
which
was
part
of
China’s
Belt
and
Road
initiative,
will
not
be
renewed.

This
initiative
had
seen
China
increase
its
investments
in
Panama
during
prior
administrations.