Geopolitical flashpoint: Panama canal’s future amid U.S.-China сompetition
By Spurb Ernest
The new U.S. President, Donald Trump, never ceases to cause astonishment. He suddenly shifted his priorities—forgetting about Greenland—and turned his attention to the Panama Canal. It appears he considers this issue simpler to resolve, and moreover, has found a new reason to accuse China.
In his inaugural address, Trump voiced his dissatisfaction with the fees levied on American vessels, including military ships, for transiting the Panama Canal. He also asserted that China controls the canal and declared that America would take it back.
Panamanian President José Raúl Mulino responded by stating that the Panama Canal will remain under Panama’s authority . “I must categorically object to President Donald Trump’s words. The canal is and will remain Panamanian,” he said. He also refuted Trump’s claim that China allegedly manages the canal. Mulino emphasized that Panama has never granted the canal to any country under concession, including China. For 25 years, it has been administered solely and responsibly by Panama. Mulino added that the canal was not a “concession or gift from the United States.”
China also reacted to the accusation, underscoring that it has never interfered in the management of the Panama Canal. At a briefing for the Chinese Ministry of Foreign Affairs, spokesperson Mao Ning stated, “ China does not participate in the management or operation of the Panama Canal and has never interfered in its affairs .” She noted that Beijing respects Panama’s sovereignty and recognizes the canal as a neutral international waterway.
Russia’s Ministry of Foreign Affairs likewise weighed in, urging Trump to refrain from any attempts to seize the canal, which legally belongs to Panama. The Russian Foreign Ministry stressed that the United States has no right to meddle in Panama’s internal affairs .
Russia’s concerns are understandable. With ongoing sanctions and the potential for further restrictions, the existence of a neutral maritime route under the control of a country not hostile to Russia is extremely important for Moscow. Considering all that the new White House leader has stated so far, one can hardly doubt that if the canal were under U.S. control, it would become an instrument of pressure. Trump could close it to those he dislikes or who refuse to bend to his demands. Unfortunately, the first days of Donald Trump’s presidency suggest such an outcome is possible.
It bears mentioning that the Panama Canal is a Panamanian-owned lock-type waterway connecting the Atlantic and Pacific Oceans. Built under a U.S. project, it opened in August 1914.
Together with the Suez Canal, it is one of the most significant artificial shipping routes in the world. It stretches over 80 kilometers and can accommodate up to 38 vessels per day, translating to approximately 14,000 ships per year—though this figure depends on various factors, including water levels in the canal.
Since its construction, this water artery has repeatedly been a source of conflict, and attempts to raise the Panamanian flag on its banks once resulted in casualties among Panamanians.
Ultimately, in protest, Panama broke off diplomatic relations with the United States, after which Washington agreed to negotiations in 1977. Even so, the fully militarized U.S. zone was not dismantled until December 31, 1999. Since then, the canal has been managed by the state-owned Panama Canal Authority.
Where did the idea of “Chinese management” originate? According to The New York Times, two ports located at opposite ends of the canal are operated by Hutchison Ports PPC, a subsidiary of the Hong Kong-based CK Hutchison Holdings. In turn, CK Hutchison Holdings collaborates with the Aviation Industry Corporation of China, a leading Chinese defense enterprise. Following Trump’s statements, Reuters reports that the Panamanian government initiated an investigation into the Hong Kong company. Hutchison acquired its right to manage the ports in 1997, when the United Kingdom returned Hong Kong to China.
It has also been reported that Panama’s Permanent Mission to the United Nations filed a complaint with Secretary-General António Guterres regarding Trump’s threats.
The Panama Canal is of great significance to international shipping because it allows vessels to travel between the two oceans without having to sail around the continent. Trump openly admits his desire to seize Greenland and the Panama Canal to further U.S. political and economic interests.
The canal is crucial for Asian trade with the United States and for the export of American hydrocarbons. This should not be overlooked, especially in light of Trump’s remarks on expanding oil and gas production.
Some experts, who were initially euphoric about the prospect of universal peace under Trump’s presidency, are now voicing concerns that a Third World War—something the world narrowly avoided during Biden’s term—might not have been averted but rather has become more plausible.
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