US-China On Very Real Collision Course Over The Panama Canal
Date
1/27/2025 12:02:36 AM
(MENAFN- Asia Times)
United States President Donald Trump's recent pledges to reclaim the Panama Canal have signaled rising US-China tensions in Latin America, America's resource-rich backyard and traditional sphere of influence.
After trump said in his January 20 inauguration speech that it is time for the US to retake control of the Panama Canal, US Senator Eric Schmitt on January 23 introduced a resolution calling for the Panamanian government to”expel official and interests of the People's Republic of China (PRC) and terminate Chinese management of key Panamanian ports.”
The resolution also calls upon the government of Panama to:
reaffirm its commitment to the“permanent neutrality” of the Panama Canal as defined by the Neutrality Treaty signed In 1977;
review and terminate agreements allowing Chinese state-owned enterprises or China-based so-called private entities to manage strategic infrastructure, including the ports of Balboa and Cristobal;
reaffirm its commitment to maintaining the sovereignty of Panama and protecting the security of the Western Hemisphere by seeking partnerships that align with democratic values and mutual respect.
The resolution said the US government should offer significant investments to modernize Panama's canal infrastructure and provide alternatives to Chinese-funded projects; provide technical, financial and strategic support to Panama as it seeks to assert sovereignty over its critical infrastructure, and reduce its dependence on entities affiliated with the PRC.
In short, Schmitt's resolution calls for the termination of the operational concession granted by the Panama Maritime Authority (AMP) to Hutchison Ports Holdings, a port management company with global interests controlled by Hong Kong tycoon Li Ka-shing.
“This has been a concern for a while that China effectively has controlled the Panama Canal. They control ports on either end. Why is that important? Because most of the goods that we transport to the Pacific go through the Panama Canal,” Schmitt told Fox News in an interview.
“The canal is not neutral anymore. It's part of China's Belt and Road Initiative, where they buy up ports, they build airports and if you criticize the CCP, you may not get flights anymore,” he said.“They build infrastructure that they can turn on and off. We simply, from a national security perspective, cannot have that situation.”
He said the US did not consider the fact that its navy would have to go through the Panama Canal before it“foolishly gave it away.”“The 21st century will be defined by who wins the great powers competition between America and communist China,” he added.
Over the past 20 years, China has significantly boosted its trade and investment with Latin America.
The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) said in a report that the trade volume between China and LAC countries has rose in recent years, reaching US$489 billion in 2023. That figure was only $18 billion in 2002.
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