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As Trump said, is China “operating” the Panama Canal?


Sean Yuan

BBC World Service Global Chinese Unit

Getty image sailed a bright blue container ship along the Panama Canal. Two workers wearing blue helmets and orange high -dimensional jackets stood in the prospects.Getty image

China is the second largest user of the Panama Canal, the indicator of goods

Donald Trump doubled in an inauguration speech, and his assertion of China’s operation of the Panama Canal was doubled.

He said: “China is operating the Panama Canal, we have not handed it to China. We gave it to Panama and we took it back.”

The Panama Canal incision in the 51 miles (82 kilometers) of the entire Central American countries is the main connection between the Atlantic and the Pacific.

As many as 14,000 ships use it as a shortcut for the journey each year. Before the Canal is built, it will take them to a long and expensive trip around the South American cutting.

What do Trump think of the canal?

In his inaugural speech, Panama was not the first time he focused on Chinese American countries and his inter -science animals.

On Christmas day, Trump posted on social media that “China’s excellent soldiers” was “full of love, but illegally operating the Panama Canal” -This was quickly denied by officials in Panama City and Beijing.

At that time, Panama President Joséraúlmulino described this statement as “nonsense” and emphasized that the canal “absolutely no Chinese intervention.”

Trump also threatened to withdraw the canal with force, on the grounds that the expected cost of “high” was accused of US vessels rejected another claim through it-Panama authorities.

After Trump’s inauguration speeches, President Murino once again emphasized that “no country in the world interfere with our government” Panama Canal.

The strategic waterway handles about 5 % of the global maritime trade volume, and is operated by the Panama Canal Authority.

However, Mr. Trump’s inaccurate proposition reflects some US officials’ attention to China’s investment in the canal and its surrounding infrastructure.

What is the history of the Panama Canal?

Historically, the United States has played a key role in the construction and management of the channel connected to the Atlantic and the Pacific.

After the French tried to build it, the United States obtained the right to the project. The construction of the canal was completed in 1914.

Until 1977, the then President Jimmy Carter signed a treaty to gradually transfer it to Panama, which Trump called it “stupid”.

Since 1999, the Panama Canal Administration has controlled the operation of the waterway.

The treaty signed by the United States and Panama stipulates that it will maintain permanent neutrality, but the United States retains the use of military forces to defend any right of the canal in the canal.

What is the role of China in the canal?

No public evidence shows that the Chinese government exercises control of the canal or the army. However, Chinese companies have a large business there.

From October 2023 to September 2024, China accounted for 21.4 % of the volume of goods in the Panama Canal, making it the second largest user after the United States.

In recent years, China has also invested in ports and docks near the canal.

The map shows the Panama Canal Port and Wharfs controlled by China.

China’s interests to the Panama Canal

Since 1997, two of the five ports adjacent to the canal, Balboa and Balboa, and Cristóbal were operated by the subsidiaries of Hutchison Port Holdings.

The company is a subsidiary of the publicly listed CK Hutchison Holdings.

It has port operations in 24 countries/regions including the United Kingdom.

Ryan Berg, director of the Americas Planning of Strategy and International Research Center, said that although it is not state -owned, Washington has always worried about how much control in the company has for the company.

A large amount of potential and useful strategic information about ships flow through the water channel through the water channel.

Berg said: “The geopolitical tension between the United States and China is getting greater and greater.” “In the case of the supply chain war, this information about goods will be very useful.”

Hutchison did not respond to the request of the Broadcasting Corporation.

Andrew Thomas, a professor at the University of Aklen, said that there was almost no competition for bidding. He said: “At that time, the United States did not really care about these ports, nor did they target these ports.”

Chinese companies of private and state -owned companies have also strengthened their business in Panama through billions of dollars, including cruise terminals and bridges built on the canal.

He emphasized that this “Chinese activity” described by Mr. Thomas may prompt Trump to break the canal that the canal is “owned” in China, but the operations of these ports are not equal to ownership.

Beijing has repeatedly stated that the connection between China and Latin America is “equality, mutual benefit, innovation, openness and interests of the people.”

What are the widespread benefits of China to Panama?

Getty Image Chinese President Xi Jinping and Juan Carlos Varela 2018, Panama. Getty image

Chinese President Xi Jinping conducted a state visit in 2018

Panama’s strategic position means that China has been competing for the country’s influence for many years and traditionally being considered to be the “backyard” of the United States. It has expanded its footprint.

In 2017, Panama and Taiwan broke the diplomatic connection and established a formal relationship with China. This is the huge victory of Chinese diplomacy.

A few months later, Panama became the first Latin American country to join China iconic belt and road initiative, which is a trillion dollars global infrastructure and investment plan.

Dominica Republic, Salvador, Nicaragua and Honduras also imitated, cut off with Taipei and turned to Beijing.

China has gradually expanded its soft software by opening its first Confucius Institute in the country and providing railways. Chinese companies also sponsored the “media training” of Panama reporters.



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