In a bold and confrontational move that could reshape the geopolitical dynamics of Latin America, the United States has publicly declared its intent to “take back” the Panama Canal from what it calls creeping Chinese influence. The announcement, delivered by US Defense Secretary Pete Hegseth during the unveiling of a new American-financed dock at the Vasco Nunez de Balboa Naval Base on April 8, marks a dramatic escalation in Washington’s efforts to reassert its dominance over a waterway long seen as strategically vital.

“China did not build this canal. China does not operate this canal. And China will not weaponize this canal,” Hegseth proclaimed to military officers and regional dignitaries. His message was unequivocal: the United States views Chinese involvement in Panama-notably through state-linked companies and infrastructure deals-as a direct threat to US national security and commercial interests.

The remarks follow a series of increasingly aggressive statements from President Donald Trump, who has revived Cold War-era rhetoric in his bid to reestablish US control over the canal. Last month, Trump directed the Pentagon to deliver “credible military options” to ensure unrestricted access to the passage. He has refused to rule out the use of force to achieve that objective.

In the days leading up to Hegseth’s visit, the US significantly ramped up its military footprint in and around Panama. Navy guided missile cruisers USS Chosin and USS Normandy, along with the high-endurance Coast Guard cutter USCGC Kimball, are now stationed near the isthmus. In addition, US Marine Corps and Navy aviation units are conducting joint exercises with Panama, focused on aerial reconnaissance, anti-submarine warfare, and maritime interdiction.

According to Hegseth, these deployments represent “bold first steps to revive our defense and security ties between our countries,” and more are expected in the coming months.

The dock inaugurated this week is viewed as a pivotal asset in this revived partnership. US officials say it will serve as a logistics hub for joint operations and rapid deployments, underscoring the growing strategic convergence between Washington and Panama’s security apparatus.

At the heart of the US offensive is growing unease over Chinese infrastructure investments in Panama-particularly near the canal zone. Over the past decade, Chinese firms have gained a foothold in logistics, port operations, and telecommunications across Central America. In Panama, Chinese companies have secured contracts to build container ports and convention centers, and in 2017, Panama joined China’s Belt and Road Initiative (BRI).

US officials argue that these investments are not benign. Hegseth accused Beijing of using its economic footprint for “intelligence-gathering and coercive leverage,” citing the proximity of Chinese-operated logistics facilities to the canal as a potential avenue for surveillance.

“China-based companies continue to control critical infrastructure in the canal area,” Hegseth warned. “That gives China the potential to conduct surveillance activities across Panama.”

While no evidence has been publicly presented to back these claims, the Pentagon and intelligence community have repeatedly issued warnings about Chinese “dual-use” infrastructure that can serve both commercial and military ends.

Despite US alarmism, Panamanian officials have consistently maintained that the canal is under exclusive Panamanian control. The Panama Canal Authority (ACP) operates the waterway independently, and ACP representatives have rejected assertions of foreign influence.

President Jose Raul Mulino, who assumed office in late 2024, has publicly defended Panama’s sovereignty, stating that the canal is part of the nation’s “inalienable patrimony.” In February, following a high-profile visit by US Secretary of State Marco Rubio, Mulino initially resisted Washington’s pressure campaign.

However, the tide appears to have shifted. Shortly after Rubio’s visit, Panama announced it would not renew its participation in China’s Belt and Road Initiative, effectively freezing any new agreements with Beijing. Though not a full rupture, the move was widely interpreted as a concession to the US-one that could redefine Panama’s foreign policy orientation.

Sources close to the administration say Mulino faced immense pressure behind closed doors. With the US threatening to impose sanctions and withhold security cooperation, Panama’s leadership reportedly feared economic retaliation and political destabilization if it resisted.

The renewed US interest in the canal is part of a broader Trump-era reassertion of American influence in the Western Hemisphere, framed around the doctrine of “hemispheric security.” It marks a return to interventionist policies reminiscent of the 20th century, when Washington routinely intervened in Latin American affairs under the guise of protecting its interests.

But the latest developments could carry unpredictable consequences. Latin American observers warn that an overt US militarization of the canal could alienate regional governments and provoke nationalist backlash. Some warn it could even destabilize Panama’s internal politics, where many still harbor resentment over the US presence in the canal zone prior to its transfer in 1999.

Critics also question the wisdom of threatening military action over unproven allegations of Chinese espionage. “This kind of rhetoric undermines Panama’s sovereignty,” said Santiago Arias, a political analyst based in Panama City. “If the US really believes in partnership, it should engage diplomatically, not with ultimatums.”

For Washington, however, the canal has once again become a strategic red line. Control of the waterway ensures not just commercial advantage, but military logistics superiority in both the Atlantic and Pacific Oceans.

As tensions with China mount globally-from the South China Sea to Taiwan-the Panama Canal has emerged as an unlikely but potent symbol of that rivalry. With both superpowers now vying for influence in the Americas, Panama finds itself at the center of a global tug-of-war.

The coming months will reveal whether US efforts to reclaim strategic dominance over the canal are sustainable-or if they will ignite a backlash that undermines the very stability they claim to protect.

For now, Washington is betting on hard power-and making it clear that in its eyes, the Panama Canal is once again an American interest too vital to relinquish.

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Source: Weekly Blitz :: Writings