US Defense Department: "We Will Protect the Panama Canal from the China Threat"

U.S. Warns of "China Threat" to Panama Canal
Panama Prosecution Launches Investigation into CK Hutchison

U.S. Secretary of Defense Pete Hegseth claimed that China is expanding its influence over the Panama Canal and posing a potential security threat, stating, "We will keep the canal safe from China."

Pete Hegseth, U.S. Secretary of Defense. Photo by AP Yonhap News

According to AP News and others on the 8th (local time), after meeting with Panamanian President Jos? Ra?l Mulino in Panama City, Secretary Hegseth visited a dock near the Panama Canal, which was built with U.S. funding, and said, "The Panama Canal is facing continuous threats from China, but the U.S. and Panama will reclaim the canal together."

He particularly emphasized that China will not be allowed to "weaponize" the Panama Canal, stating, "What I want to make clear is that China did not build this canal. The U.S. will maintain the canal so that all countries can use it safely."

The U.S. led the construction of the Panama Canal (completed in 1914) and managed it for over 85 years before transferring operational rights to the Panamanian government in 1999 through agreements including the 1977 treaty.

Previously, former U.S. President Donald Trump repeatedly expressed the need to reclaim the Panama Canal due to China's influence, even mentioning the possibility of "not ruling out the use of force." Under U.S. pressure, the Hong Kong-based company CK Hutchison Holdings is in the process of transferring the operation of two Panama Canal ports to a consortium led by the U.S. asset management firm BlackRock.

Separately, Panama's prosecution announced on the same day the start of an investigation into Panama Port Company, a Panama Canal operating subsidiary of CK Hutchison. The day before, Panama's Comptroller General's Office conducted an audit of Panama Port Company's port operations and found legal violations such as payment defaults and accounting errors. The Comptroller General's Office explained, "It is judged that Panama Port Company must pay at least $300 million more."

Depending on the circumstances, there is also speculation that the Panamanian government may use the prosecution's investigation results as an opportunity to terminate its contractual relationship with CK Hutchison.