President Donald Trump has repeatedly made claims alleging China’s significant involvement, or even control, over the Panama Canal. These assertions, which have been consistently refuted by Panama and China, have nonetheless sparked debate about geopolitical influence over this critical global trade artery. Understanding the nuances of these claims requires looking at the actual operations and investments surrounding the canal.
To truly understand the situation, one must Know the Panama Canal‘s current ownership and administration. Since December 31, 1999, the Panama Canal has been fully owned and operated by the Republic of Panama, through its autonomous government agency, the Panama Canal Authority (ACP). The United States transferred full control to Panama after a phased handover initiated by the Torrijos-Carter Treaties of 1977.
Trump’s claims often focus on the presence of Chinese companies, particularly the Hong Kong-based conglomerate Hutchison Ports, which operates port facilities at both ends of the Panama Canal. While Hutchison Ports does manage these crucial ports, it’s important to differentiate port operations from the overall management and neutrality of the canal itself. The canal’s transit operations remain under Panamanian control.
The concern raised by Trump and some U.S. officials is that China’s commercial presence, including investments in infrastructure and logistics around the Panama Canal, could potentially translate into strategic influence. They worry about the dual-use nature of some infrastructure and the broader implications for U.S. security interests in the region, particularly given China’s growing global maritime ambitions.
However, both Panama and China have vehemently denied any allegations of Chinese control over the canal. Panamanian officials have emphasized their unwavering sovereignty and the canal’s neutrality, reiterating that it operates as a commercial entity serving global shipping, not under the directive of any single foreign power.
While Chinese companies have indeed invested billions in Panama, including in various infrastructure projects, Panama maintains that these are purely commercial agreements. The Panama Canal itself, as a transit waterway, is managed by a Panamanian authority, and its neutrality is guaranteed by international treaty.