U.S. defence secretary says China poses a threat to Panama Canal

U.S. and Panamanian military patrol the Panama Canal during a joint drill held as U.S. Defense Secretary Pete Hegseth visits the Port of Rodman in West Panama, Tuesday, April 8, 2025. (AP Photo/Matias Delacroix)

PANAMA CITY — U.S. Secretary of Defence Pete Hegseth said Tuesday the Panama Canal faces ongoing threats from China, but that together the U.S. and Panama will keep it secure.

Speaking at a ribbon cutting for a new U.S.-financed dock at the Vasco Nuñez de Balboa Naval Base after a meeting with Panama President Jose Raul Mulino, Hegseth said the U.S. will not allow China or any other country to threaten the canal’s operation.

“To this end, the United States and Panama have done more in recent weeks to strengthen our defence and security cooperation than we have in decades,” he said.

Hegseth alluded to ports at either end of the canal that are controlled by a Hong Kong consortium, which is in the process of selling its controlling stake to another consortium including BlackRock Inc.

“China-based companies continue to control critical infrastructure in the canal area,” Hegseth said. ”That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable.”

Hegseth met with Mulino for two hours Tuesday morning before heading to the naval base that previously had been the U.S. Rodman Naval Station.

On the way, Hegseth posted a photo of the two men laughing to X and wrote that it was an honour speaking with Mulino.

“You and your country’s hard work is making a difference. Increased security cooperation will make both our nations safer, stronger and more prosperous,” he wrote.

The visit comes amid tensions over U.S. President Donald Trump’s repeated assertions that the United States is being overcharged to use the Panama Canal and that China has influence over its operations. Panama has denied those allegations.

After Hegseth and Mulino spoke by phone in February, the U.S. State Department published on X that an agreement had been reached to not charge U.S. warships to pass through the canal. Mulino publicly denied there was any such deal.

Trump has gone so far as to suggest the U.S. never should have turned the canal over to Panama and that maybe the U.S. should take it back.

The China concern was provoked by the Hong Kong consortium holding a 25-year lease on ports at either end of the canal. The Panamanian government announced that lease was being audited and late Monday concluded that there were irregularities.

The Hong Kong consortium, however, has already announced that CK Hutchison would be selling its controlling stake in the ports to a consortium including BlackRock Inc., effectively putting the ports under American control once the sale is complete.

Rubio told Mulino during his visit that Trump believed that China’s presence in the canal area may violate a treaty that led the United States to turn the waterway over to Panama in 1999. That treaty calls for the permanent neutrality of the American-built canal.

Mulino has denied that China has any influence in the operations of the canal. In February, he expressed frustration at the persistence of the narrative. “We aren’t going to speak about what is not reality, but rather those issues that interest both countries.”

The United States built the canal in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. Washington relinquished control of the waterway to Panama on Dec. 31, 1999, under a treaty signed in 1977 by President Jimmy Carter.

“I want to be very clear, China did not build this canal,” Hegseth said Tuesday. “China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective and most lethal fighting force in the world.”

Article written by Juan Zamorano, The Associated Press