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By Gabe Whisnant
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The Chinese government responded after U.S. Secretary of Defense Pete Hegseth warned Tuesday that the Panama Canal remains under persistent threat from China.
"The United States will not allow China or any other nation to jeopardize the operation of the canal," Hegseth said. "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."
The remarks drew a response from the Chinese government, which countered: "Who represents the real threat to the Canal? People will make their own judgment."
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Why It Matters
Hegseth's visit comes amid broader tensions sparked by Trump's repeated claims that the U.S. is overcharged for using the canal and that China has undue influence over its operation—an assertion Panama has firmly denied.
After a February phone call between Hegseth and Panamanian President José Raúl Mulino, the U.S. State Department claimed an agreement had been reached to waive fees for U.S. warships; Mulino later denied any such arrangement.
What to Know
On Tuesday, Hegseth pointed to concerns over Chinese influence near the canal, particularly ports at either end currently controlled by a Hong Kong consortium, which has announced plans to sell its controlling stake to a group that includes U.S.-based BlackRock Inc.
"China-based companies continue to control critical infrastructure in the canal area," Hegseth said. "That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous, and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable."
The defense secretary's comments, made during a ribbon-cutting ceremony for a new U.S.-funded dock at the Vasco Nuñez de Balboa Naval Base, followed a meeting with Mulino.
What People Are Saying
Shortly after the meeting, the Chinese Embassy in Panama slammed the American government in a statement on X, saying the U.S. has used "blackmail" to further its own interests and that who Panama carries out business with is a "sovereign decision of Panama ... and something the U.S. doesn't have the right to interfere in."
"The U.S. has carried out a sensationalistic campaign about the 'theoretical Chinese threat' in an attempt to sabotage Chinese-Panamanian cooperation, which is all just rooted in the United States' own geopolitical interests," the embassy wrote.
Hegseth said Tuesday: "China did not build this canal. China does not operate this canal. And China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective, and most lethal fighting force in the world."
What Happens Next
Definitive documentation for the transfer of the two Panama port operations to the U.S.-linked consortium was expected to be signed by April 2, but sources told Hong Kong's South China Morning Post newspaper this will no longer happen, citing "obvious reasons" and political sensitivities. However, talks remain ongoing under a 145-day exclusivity period.
Reporting by the Associated Press contributed to this story.
Update: 4/8/25, 7:12 p.m. ET: This article has been updated with additional information and remarks.
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