Trump Says China Controls Panama Canal, Fact or Political Issue?

Bisnis | Ekonomi - Posted on 23 January 2025 Reading time 5 minutes

A cargo ship crosses the Aqua Clara lock in the Panama Canal in Colon, Panama, September 2, 2024.(AP PHOTO/MATIAS DELACROIX via VOA INDONESIA)

DIGIVESTASI - In his inaugural address as President of the United States, Donald Trump reiterated the claim that Chinese troops are illegally operating the Panama Canal. This assertion has been previously denied by officials from Panama City and the Beijing government.

 

Panamanian President José Raúl Mulino firmly dismissed the allegation as "nonsense," stressing that there is no Chinese involvement in managing the strategic waterway.

 

In recent weeks, Trump has also threatened to take control of the Panama Canal, accusing Panamanian authorities of imposing high tariffs on American ships. However, Panamanian authorities have refuted the claim, emphasizing that the Panama Canal is fully managed by the Panama Canal Authority (ACP), an independent Panamanian government agency, and not by China.


 

History and Strategic Importance of the Panama Canal

This waterway, connecting the Atlantic and Pacific Oceans and handling approximately 5% of global maritime trade, has a long history of U.S. involvement. After France's initial efforts to construct the canal failed, the United States completed its construction in 1914. Until 1999, the canal was under U.S. control before being fully handed over to Panama under a treaty signed by President Jimmy Carter in 1977.

 

The treaty stipulated that the canal remain neutral, with the United States retaining the right to defend its neutrality if threatened.


 

China's Investments and Presence in Panama

Although there is no evidence to suggest that the Chinese government controls the canal, Chinese companies exert significant influence in the region. Between October 2023 and September 2024, China was the second-largest user of the Panama Canal after the U.S., contributing 21.4% of the total cargo volume.

 

Additionally, Chinese companies have invested heavily in infrastructure around the canal, including the Balboa and Cristobal ports, located on the Pacific and Atlantic sides, respectively. These ports are operated by subsidiaries of Hutchison Port Holdings, a Hong Kong-based firm.

 

Ryan Berg, Director of the Americas Program at the Center for Strategic and International Studies, noted that logistical information from these ports could hold significant strategic value, especially in a geopolitical context. Nevertheless, experts emphasize that operating these ports does not equate to ownership by the Chinese government.


 

Public Reactions and China's Diplomatic Moves

Members of the Chinese community in Panama and some local residents view Trump’s claims as unfounded. Dora Gao, a Chinese resident of Panama City for over a decade, called Trump’s statements a reaction to China’s growing influence in the region.

 

Since establishing diplomatic relations in 2017, China has bolstered its footprint in Panama through massive investments in infrastructure projects, including ports, cruise terminals, and railways.

 

However, Trump’s allegations about Chinese troops in the Panama Canal are widely regarded as baseless and even absurd. Local journalist Tito Herrera, who has extensively studied the canal's operations, said he has never found any evidence of Chinese military involvement.


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Source: detik.com

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