In brief
Despite speculation, the Panama Canal is operated solely by Panama.
Former President Donald Trump has stirred controversy by claiming that China "operates" the Panama Canal. In his recent address, he stated, “We gave it to Panama and we're taking it back," which sparked immediate denial from both Panamanian and Chinese officials. The Panama Canal, a crucial maritime shortcut, serves around 14,000 ships annually, connecting the Atlantic and Pacific Oceans.Trump's assertion isn't new; he previously referred to "Chinese soldiers" illegally operating the canal, a statement that Panamanian President José Raúl Mulino labeled as "nonsense." The Panama Canal Authority, which is under the Panamanian government, manages the waterway, and there is no evidence that the Chinese military has any control over its operations.Historically, the US constructed the Panama Canal, controlling it until 1999 when formal authority was transferred to Panama. However, China's growing involvement is evident as they accounted for over 21% of the canal's cargo volume from October 2023 to September 2024, making them the second-largest user after the US.Additionally, Chinese firms, particularly Hutchison Port Holdings, have invested in key ports adjacent to the canal. This involvement raises concerns in the US regarding potential intelligence access. Despite these investments, experts stress that operational control does not imply ownership, and Beijing insists their actions promote mutual benefits.Panama’s strategic location has attracted Chinese interests, especially following its decision to sever ties with Taiwan in favor of Beijing as part of a broader diplomatic strategy. This relationship highlights a complex geopolitical landscape, especially as the US sees Latin America as its traditional sphere of influence.
