Hegseth says U.S., Panama will "take back" canal "from China's influence"
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Panama Canal administrator Ricaurte Vásquez (left) next to Defense Secretary Pete Hegseth during a visit to the Miraflores locks of the Panama Canal in Panama City on Tuesday. Photo: Martin Bernetti/AFP via Getty Images
Defense Secretary Pete Hegseth said the Panama Canal faces "ongoing threats" as he singled out China during a visit to the key trade route on Tuesday.
The big picture: Hegseth's comments following a meeting with Panama President José Raúl Mulino that the U.S. and Panamanian officials would "take back" the key trade route "from China's influence" built on previous warnings from Trump administration officials, and they drew a strong rebuke from Beijing.
- The first visit by a U.S. defense secretary to Panama in 21 years comes after President Trump has said Panamanian authorities should lower fees for U.S. ships to transit the canal or return its control to the U.S.
- Mulino has rejected accusations of Chinese interference but pledged his government would conduct an audit of Beijing-operated ports at the canal and share findings with the U.S. He said Panama wouldn't renew its deal with China over its Belt and Road building initiative.
What they're saying: "The United States of America will not allow Communist China or any other country to threaten the canal's operation or integrity," Hegseth said during a ceremony for a U.S.-funded dock at the Vasco Nuñez de Balboa Naval Base in Panama City.
- "To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades," he added.
- Hegseth pointed to "China-based companies" that "control critical infrastructure in the canal area," referring to two Panamanian ports that a consortium — including U.S. firm BlackRock — is in talks to purchase from Hong Kong's CK Hutchison.
- This "gives China the potential to conduct surveillance activities across Panama," he added. "This makes Panama and the United States less secure, less prosperous and less sovereign."
The intrigue: After their meeting, Hegseth and Mulino released a joint statement in English and Spanish that included an agreement to work on compensation "for the payment of tolls and charges" for ships passing through the canal.
- AP notes that only the Spanish version states: "Secretary Hegseth recognized the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas."
- When asked to comment on the difference between the two statements, the Pentagon referred Axios to Hegseth's comments on Wednesday that "[w]e certainly understand that the Panama Canal is in Panama, and protecting Panamanian sovereignty from malign influence is important."
- Hegseth added that's "why when President Trump says we're taking back the Panama Canal from Chinese influence, that involves partnership with the United States and Panama. And we're grateful that they've welcomed US troops on Panamanian soil by invitation through rotational joint exercises."
The other side: "Who is truly safeguarding the canal's neutrality and prosperity? Who keeps clamouring to 'take back' the canal? Who is the real threat to it?" the Chinese Embassy in Panama said in a statement posted to social media, per a Reuters translation.
Editor's note: This article has been updated with further comment from Defense Secretary Pete Hegseth.
