U.S. Ready to "Restore" Panama Canal from Chinese Influence – Defense Secretary Pete Hegseth

U.S. Ready to "Restore" Panama Canal from Chinese Influence – Defense Secretary Pete Hegseth

Panama City, April 9 (Reuters) — U.S. Defense Secretary Pete Hegseth has stated that the U.S. government is ready to "restore" the Panama Canal from Chinese influence. He made this announcement during his visit to Panama on Tuesday, promising that China would not be allowed to use the canal for espionage purposes.

After discussions with the Panamanian government, Hegseth said that the U.S. would work more closely with Panama's security forces to prevent any Chinese influence over the canal's security. He added, "China did not build this canal, China does not operate it, and China will not be able to use it as a weapon. Together with Panama's leadership, we will keep the canal safe and open for all nations."

Nearly 40% of U.S. container traffic, worth around $270 billion annually, passes through the Panama Canal, the world's second-largest inter-oceanic waterway.

Hegseth, who is the first U.S. defense secretary to visit Panama in decades, toured the canal and met with members of both Panamanian and U.S. security forces. While he made strong statements about China's influence, he tried to reassure the people of Panama, especially after former President Trump's threat to "restore" the canal.

Hegseth's visit comes at a time when the Trump administration was working on military plans concerning the Panama Canal, as the U.S. constructed the canal a century ago and handed it over to Panama in 1999. Trump had claimed that the agreement to transfer the canal was a poor decision for the U.S.

Panamanian President José Raúl Mulino, who recently announced Panama's withdrawal from China's Belt and Road Initiative, expressed support for U.S. assistance during Hegseth's visit. He backed the U.S. concerns regarding China's presence and shared worries about the canal's security.

In this context, the Chinese embassy has denied any influence over the Panama Canal's operation, stating, "The Panama Canal has never been under Chinese management, nor has it ever been operated by Chinese intervention."

Meanwhile, experts highlight that the Panama Canal is of strategic importance to the United States, particularly if the U.S. Navy requires access in any future regional conflicts.