US Pressures Panama to Cut Chinese Ties Over Canal Control

On February 2, 2025, U.S. Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino in Panama City to address growing concerns over China's involvement in the Panama Canal. Rubio urged Panama to reduce Chinese influence around the canal, warning of possible U.S. action if changes were not implemented.

The United States has expressed apprehension regarding Chinese companies operating port facilities at both ends of the canal. President Donald Trump suggested that China's involvement might violate treaties ensuring the canal’s neutrality, even hinting at possible military action to protect U.S. rights.

In response, President Mulino announced that Panama would not renew its participation in China’s Belt and Road Initiative (BRI) once the agreement expires. This marks a significant shift, as Panama was the first Latin American country to join the BRI in 2017.

Despite this, Mulino insisted that Panama maintains sovereignty over the canal and proposed technical discussions to address U.S. concerns.

The Chinese government expressed regret over Panama’s decision, urging it to reconsider. China’s Assistant Foreign Minister, Zhao Zhiyuan, argued that the partnership had brought economic benefits.

Meanwhile, two Panamanian lawyers filed a lawsuit seeking to annul a contract with CK Hutchison Holdings, a Hong Kong-based company operating ports at the canal’s entrances.

The case argues that the concessions granted to the company are unconstitutional, potentially leading to a reevaluation of foreign involvement in Panama’s critical infrastructure.

Image: US Department of State/Flickr

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