How is the Panama Canal Key to Security and Trade in Changing Times?

Chinese influence threatens U.S. control of the Panama Canal, risking national security and global trade dominance.

At a Glance

The Panama Canal is crucial for U.S. national security and global trade
China’s growing influence in global shipping raises concerns
Chinese state-owned enterprises control strategic ports near the Canal
Trump’s false claim about Chinese soldiers operating the Canal sparks debate
U.S. officials worry about China’s strategic positions in shipping

Trump’s Claim Ignites Debate on Chinese Influence

President-elect Donald J. Trump recently stirred controversy with his false claim that Chinese soldiers operate the Panama Canal. While this assertion was quickly debunked by Panamanian President José Raúl Mulino, it has reignited a crucial debate about China’s growing influence in global shipping and its potential threat to U.S. national security. The Panama Canal, a vital maritime shortcut connecting the Atlantic and Pacific Oceans, remains under the control of the Panamanian government. However, the specter of Chinese involvement looms large, casting a shadow over this strategic asset.

Despite the inaccuracy of Trump’s statement, his concerns about Chinese influence are not entirely unfounded. China has invested heavily in building ports worldwide and has become the largest exporter, giving it significant leverage in global shipping. This growing influence has raised alarms among U.S. officials who worry about China’s strategic positions potentially allowing them to monitor other countries’ activities.

The Panama Canal is a huge security factor for the US. I have been there several times and we cannot afford to lose it to China. Do what we have to Mr.President but keep that canal open to US trade and especially our military! https://t.co/abLeYEGl8D

— Jerry Carl (@CarlForAlabama) December 22, 2024

The Strategic Importance of the Panama Canal

The Panama Canal’s significance cannot be overstated. Constructed at a high cost in both lives and money, with over 5,600 workers losing their lives during its construction, the Canal opened in 1914 and has since been integral to America’s economic ecosystem. Today, over 70% of Canal transits are linked to U.S. ports, underscoring its critical role in global trade and U.S. economic prosperity.

“By far the most important action I took in foreign affairs during the time I was President was related to the Panama Canal.” – President Theodore Roosevelt

Beyond its economic importance, the Canal is essential for rapid U.S. Navy deployment, making it a cornerstone of national security. The ability to quickly move naval assets between the Atlantic and Pacific Oceans gives the United States a strategic advantage that it cannot afford to lose.

Panama Canal Treaties in the news…

Recently concerns over the neutrality and security of the Panama Canal has been brought into question. It is after all no secret that China controls ports on either end of the canal. So US concerns over secure access to this vital waterway… pic.twitter.com/vHFsiHT4Up

— Brent D. Sadler (@brentdsadler) December 22, 2024

China’s Growing Influence: A Threat to U.S. Interests

The growing influence of Chinese state-owned enterprises, particularly Hutchison Ports PPC, poses a significant threat to the Canal’s neutrality and U.S. strategic interests. Brian Hughes from the Trump-Vance transition team didn’t mince words when he stated, “Chinese control of the Panama Canal absolutely poses a national security threat to the U.S.” This sentiment reflects a growing concern among U.S. officials about China’s expanding reach in critical infrastructure worldwide.

“Chinese control of the Panama Canal absolutely poses a national security threat to the U.S.” – Brian Hughes

China’s involvement in the Canal’s operations could lead to increased fees, political leverage, or even control, directly affecting global trade and U.S. interests. The expiration of Hutchison Ports PPC’s contract presents a critical juncture. It’s an opportunity for the U.S. to encourage a transparent bidding process, involving American and allied companies, to ensure that this vital waterway remains free from potential Chinese manipulation.

America’s Call to Action

The United States must act decisively to protect the Panama Canal and counter China’s growing influence. Reviving “America First” policies could help secure the Canal as a strategic asset and push back against China’s economic ambitions in the region. Strengthening Panama’s institutions and infrastructure is crucial to counter external pressures, including those from China.

Historical investments in the Canal provide a blueprint for modern action. As Governor Ronald Reagan once said, “We bought it, we paid for it, we built it, and we intend to keep it.” This sentiment must guide current U.S. policy towards the Panama Canal. The U.S. must foster competition, strengthen relations with Panama, and integrate the Canal into a broader regional strategy to maintain its influence and secure this critical asset for generations to come.

“We bought it, we paid for it, we built it, and we intend to keep it.” – Governor Ronald Reagan

In the face of China’s growing global influence, the United States cannot afford to be complacent about the Panama Canal. While Trump’s recent claim may have been inaccurate, it has sparked a necessary conversation about the future of this vital waterway. The U.S. must take decisive action to safeguard its interests, protect global trade, and ensure that the Panama Canal remains a beacon of American strategic influence in an increasingly competitive world.