Home World International Crisis Panama frustrated by ongoing US claims of Chinese influence over canal operations

Panama frustrated by ongoing US claims of Chinese influence over canal operations

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PANAMA CITY — On Thursday, Panama’s president announced that he had directed his foreign minister not to engage in discussions regarding U.S. claims of Chinese interference concerning the Panama Canal during a visit from the head of U.S. Southern Command.

The president’s remarks followed tensions that arose the previous day when the U.S. embassy in Panama stated that one of the key topics for Adm. Alvin Holsey’s visit was to address measures aimed at safeguarding the canal region from the influence and control of the Chinese Communist Party.

In response, the Chinese Embassy in Panama released a statement asserting that China has “never been involved in the management or operation of the Panama Canal.” The embassy characterized the assertions from the Trump administration that China exercises control over the canal as “pure lies” and accused the U.S. of attempting to disrupt the relationship between China and Panama, insisting these efforts would ultimately be unsuccessful.

During a press briefing on Thursday morning, Mulino addressed the ongoing dispute, expressing frustration over how long the issue has persisted, referencing Trump’s earlier threats to reclaim control of the canal.

“We will not speak of lies,” Mulino stated. “To do so would only feed the obsession surrounding the supposed Chinese control over the canal in Panama. For the love of God.”

He previously sought to relieve tensions through a post on the social media platform X, emphasizing the significance of the bilateral agenda with the U.S. while underscoring that Panama would not engage in discussions about false narratives. “We aren’t going to entertain discussions of what’s not grounded in reality; rather, we will focus on matters of mutual interest,” he said.

On Thursday, Mulino also indicated that Panama has assembled a team in Washington, working not only to lobby on behalf of the canal issue but also aiming to shift the narrative presented in the media.

Adm. Holsey held a meeting with the administrator of the Panama Canal on Thursday, focusing on the canal’s strategic significance. His visit marks the first time a high-ranking U.S. official has arrived in Panama since Secretary of State Marco Rubio’s visit earlier in the month.

Top of Holsey’s agenda included concerns regarding China’s potential influence on the canal and Panama’s collaboration with the U.S. in managing immigration.

U.S. apprehensions primarily center around a consortium based in Hong Kong that oversees port facilities at both ends of the canal. The canal itself is managed and operated by Panama, which is currently auditing the consortium’s 25-year contract extension to operate the ports.

Trump has expressed dissatisfaction over U.S. Navy vessels being charged for passage while being expected to protect the canal.

The United States originally constructed the canal in the early 1900s to facilitate the movement of commercial and military ships between its coasts. Washington formally handed control of the canal over to Panama on December 31, 1999, following a treaty signed in 1977 by President Jimmy Carter.