U.S. Defense Secretary Pete Hegseth pledged on Tuesday to push back against Chinese influence in the Panama Canal during a visit to Panama City. Standing at a U.S.-funded pier, Hegseth said the U.S. would work with Panama to keep the canal free from foreign control, particularly from China, which he accused of leveraging commercial ties for espionage.
"China did not build, operate, or control the Panama Canal—and it never will," Hegseth stated. He emphasized the importance of the canal, through which over 40% of U.S. container traffic—worth $270 billion—flows annually.
Hegseth, the first U.S. defense secretary in decades to visit Panama, met President Jose Raul Mulino, who recently withdrew Panama from China’s Belt and Road Initiative. Mulino has aligned with U.S. interests, aiding in curbing migration and accepting deportation flights.
The visit comes amid reports that the Trump administration requested military options to ensure access to the canal. Trump has criticized the 1999 handover of the canal to Panama and claimed, falsely, that China operates it. Still, officials express concern over Chinese infrastructure projects, such as a planned bridge near the canal.
The Chinese Embassy in Panama denied any control or interference in the canal’s operations, pointing to the 1989 U.S. invasion as the only historical disruption.
Hegseth stressed that the canal is "key terrain" for U.S. strategic interests, particularly in any future conflict in Asia. Former U.S. ambassador John Feeley pushed back on Trump's rhetoric, saying it misrepresents the U.S.-Panama neutrality treaty.
Panama insists it manages the canal responsibly, serving global trade without foreign interference. As tensions rise, the U.S. seeks stronger ties with Panama to secure this vital maritime route.