Pentagon Chief Vows to Reclaim Panama Canal from China’s Grip

 

Pentagon Chief Vows to Reclaim Panama Canal from China’s Grip

DECK
Hegseth announces sweeping military coordination with Panama to oust China’s influence over the vital waterway; Trump-era strategy gains fresh traction

KEY FACTS 

• What: US Secretary of Defense pledges end to China’s influence in Panama Canal

• Where: Panama City, during historic visit by US defense chief

• When: April 2025

• Why: Concerns over China’s strategic hold via commercial investments

• How: Renewed US-Panama military cooperation, economic pushback, and canal surveillance

• Backdrop: First US defense chief visit to Panama in decades; follows Panama's exit from Belt and Road

SITUATION SNAPSHOT 
Under the sweltering heat of Panama City, US Secretary of Defense Pete Hegseth stood shoulder to shoulder with Panamanian President Jose Raul Mulino, overlooking the iconic canal. The atmosphere was charged with geopolitical tension as Hegseth declared a new era of joint vigilance to secure one of the world’s most strategic chokepoints.

WHAT WE KNOW 
During his visit, Hegseth held closed-door talks with President Mulino, marking the first such high-level US defense visit in decades.
Following the meeting, Hegseth emphasized Washington’s goal to reestablish influence over the canal in coordination with Panama, explicitly targeting China's growing involvement in regional infrastructure.
"Together, we (Panama and the US) will take back the Panama Canal from China's influence," he said.
The visit coincided with the finalization of a new bilateral security arrangement, the first since the canal was handed over to Panama in 1999.
Hegseth warned that Chinese commercial operations in the region were a façade for intelligence-gathering, asserting the canal must remain a neutral global asset.

WHAT’S NEXT 
US military assets are expected to increase their presence in and around the canal zone, with Panamanian authorities taking the lead in coordination.
A Pentagon task force is reportedly evaluating options to support Panama’s maritime defense and canal oversight.
President Trump’s national security team is expected to brief the public on additional policy steps within the week.

VOICES ON THE GROUND 
"Together, we (Panama and the US) will take back the Panama Canal from China's influence," — Secretary Pete Hegseth.
"China did not build this canal. 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," — Secretary Hegseth.
"The threat from China is real, and this administration understands that," — Hegseth, praising President Mulino’s stance.

CONTEXT 
The Panama Canal, constructed by the United States over a century ago, was fully transferred to Panama in 1999.
In recent years, Chinese firms—many tied to Beijing’s Belt and Road Initiative—have deepened their investment footprints around both ends of the canal, raising alarms in Washington.
Last month, American investment giant BlackRock led a major acquisition of CK Hutchison's $22.8 billion port assets, including facilities adjacent to the canal.
This move, hailed by President Trump as evidence of "reclaiming the Panama Canal," prompted an antitrust investigation by Chinese regulators.
Panama formally withdrew from the Belt and Road Initiative in February and has supported Trump’s broader migration agenda by cooperating with deportations and border security efforts.

REPORTER INSIGHT
On the ground in Panama City, US officials are cautious but determined. The shift marks more than a symbolic gesture—it signals a growing willingness to counter China’s influence far from East Asia. The canal, once again, has become a flashpoint in the global power contest.