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China's Influence and the Panama Canal: Clear Misunderstanding

In the wake of President Trump’s claims about China controlling the Panama Canal, both Panama and experts clarify the situation.

Source: bbc.co.uk1 min read
China's Influence and the Panama Canal: Clear Misunderstanding
Image via bbc.co.uk

In brief

China is not operating the Panama Canal despite Trump's assertions; the waterway is managed by the Panama Canal Authority, ensuring its neutrality.

During his inaugural address, President Donald Trump insisted that China operates the Panama Canal, repeating claims he made previously. He mentioned that the canal belongs to Panama, and the U.S. should reclaim it, a statement denied by officials in both Panama and China. The Panama Canal, a crucial link for global trade, is run by the Panama Canal Authority, a government agency, not Chinese military. Trump's comments reflect anxieties about China's influence, as it is the second-largest user of the canal, responsible for 21.4% of its cargo volume. However, Chinese companies that operate ports near the canal do not equate to ownership. Since 1999, the canal has been under Panamanian control, following a treaty between the countries that emphasized its neutrality. China's growing presence in Panama, notably through investments, has raised concerns in the U.S., but authorities there reaffirm that no country interferes with their management. China's aims to expand its influence in Latin America led to diplomatic shifts with several countries, yet the canal itself remains firmly under Panama's jurisdiction.

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