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US Secretary of State Warns Panama About Chinese Control of the Canal

US Secretary of State Marco Rubio warned Panama’s President Jose Raul Mulino that the US would take necessary measures if Panama does not act to reduce China’s influence over the Panama Canal. Following discussions in Panama City, Mulino indicated he would review agreements with Chinese businesses and enhance cooperation with the US on migration, but he maintained that Panama’s sovereignty over the canal is non-negotiable.

Rubio conveyed a message from President Trump, stating that China’s presence, particularly through a Hong Kong-based company operating two ports near the canal, poses a threat and violates the US-Panama treaty. He emphasized that the current situation is unacceptable and that immediate changes are required to avoid US action to protect its treaty rights.

Mark Rubio
Mark Rubio visited Panama, February 2, 2025.
Source: REUTERS

While Rubio did not specify the actions Panama should take or the nature of potential US retaliation, Trump has previously suggested taking control of the canal, which was built by the US and handed over to Panama in 1999. Trump claimed that the canal is effectively being operated by China and stated that the US would reclaim it if necessary, although he did not believe military intervention would be required.

Rubio, known for his tough stance on China, expressed concerns that China could use the ports to disrupt canal operations during a conflict with the US Mulino described his meeting with Rubio as respectful and expressed a willingness to review Chinese business agreements, including a significant 25-year concession for port operations.

The US government has criticized this concession as part of China’s expansion in Panama, which they argue violates a neutrality treaty from 1977. However, Panama’s government and some experts contend that the ports are not part of the canal’s operations, which are managed by the Panama Canal Authority.

Mulino also announced that a broad agreement with China related to the Belt and Road initiative would not be renewed, and he expressed confidence that there is no immediate threat to the neutrality treaty or the use of military force regarding it. He emphasized the importance of direct talks with Trump.

During his visit, Rubio toured the Miraflores Locks and was briefed by canal officials. China has denied any involvement in the canal’s operations and affirmed its respect for Panama’s sovereignty.

Rubio’s trip to Central America and the Caribbean aims to refocus US diplomacy in the region, partly to address migration issues. He has instructed the State Department to prioritize migration in its diplomatic efforts and is looking to facilitate the acceptance of US deportation flights to the region.

Февраль, 03, 2025 57 0
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Author photo - Olga Nesvetailova
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A creative freelancer with the ability to study source literature and create relevant material. The sea has always attracted me with its unbridledness, mystery, and a love of creativity helped me express my most interesting thoughts and reflections on paper, therefore, now I am doubly interested in studying the world of shipbuilding and writing useful materials for sailors.
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