Pete Hegseth emphasizes vigilance against foreign influence during visit to Panama.
PANAMA CITY.
U.S. Secretary of Defense Pete Hegseth declared on April 8, 2025, that the government led by
Donald Trump will "not allow" China to jeopardize the operation of the Panama Canal.
Addressing military personnel at a naval base near the canal, Hegseth highlighted what he described as new threats facing the interoceanic route.
"United States will not permit the Chinese Communist Party, or any other country, to endanger the operation or integrity of the canal," he stated.
Although the U.S. handed over control of the canal to Panama in 1999, Trump has previously suggested a potential return to U.S. control, citing concerns over Chinese influence.
Hegseth affirmed, "China did not build this canal, does not operate this canal, and will not militarize this canal.
Together with Panama, we will keep the canal safe."
During his visit, he met with Panama's President José Raúl Mulino, where he raised concerns about Chinese companies maintaining control over critical infrastructure in the canal area.
According to Hegseth, this situation allows China to conduct surveillance operations, posing security risks to both Panama and the United States.
He emphasized a collaborative effort to counteract Beijing's influence over the canal.
The U.S. government regards the operations of Hutchison Ports, a Hong Kong-based company that runs two significant ports at both ends of the canal, as a national and regional security threat.
Approximately 5% of global maritime trade passes through this strategic waterway.
Prior to Hegseth's arrival, Panama's Office of the Comptroller revealed that Hutchison's subsidiary had violated its contract to operate the Balboa (Pacific) and Cristobal (Atlantic) ports.
The report stated that Panama has not received about $1.2 billion from the company for its operations at these ports.
On March 4, Hutchison announced plans to sell 43 ports in 23 countries, including its operations in Panama, to a U.S. consortium.
However, this transaction has been stalled due to an investigation by Chinese regulators.
Trump viewed this deal as part of a broader effort to reclaim control over the canal.
During Hegseth’s address, he praised Panama for stepping back from China’s flagship infrastructure initiative known as the Belt and Road Initiative.
While he was meeting with President Mulino, approximately 200 individuals, organized by labor unions and leftist groups, protested against his visit in downtown Panama City.
Demonstrators carried signs that read "Trump, take your hands off Panama" and burned U.S. flags while waving Panamanian flags.
Hegseth is scheduled to participate in a security conference with Central American officials on Wednesday.