* The U.S. Secretary of State, Marco Rubio, travels to Panama this week, warning of risks posed by the control of two canal ports by a company allegedly aligned with Beijing’s political interests.
** Analysts consulted by Expediente Público highlight that the two exit ports are managed by Chinese subsidiaries, posing a threat to the flow of global trade through this route.
*** U.S. President Donald Trump began his term with a strong geopolitical statement regarding the Panama Canal, which is currently under Chinese influence.
Eric Lemus / Expediente Público
The tour of Central America by the United States Secretary of State, Marco Rubio, will encounter a particularly tense scenario upon his arrival in Panama due to President Donald Trump’s concerns about China’s influence in the administration of the interoceanic passage.
The former Republican congressman from Florida, now head of U.S. diplomacy, stated during the hearing confirming his appointment on January 15 that “the terms under which that Canal (of Panama) was handed over have been violated.”
“While technically the sovereignty over the Canal has not been handed over to a foreign power, in reality, a foreign power does possess it today through its companies that we know are not independent,” Rubio denounced, referring to the companies directly linked to China that manage the two ports.
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Americans claim that companies apply special rates for Chinese merchants. Meanwhile, Panama’s President Raúl Mulino denied that exorbitant tariffs are imposed on U.S. vessels or that China controls the Canal.
In a statement on January 20 through his X account, Mulino reiterated that the administration «will remain under Panamanian control with respect to its permanent neutrality.»
Panama Canal: A Strategic Military Reason
Robert Evan Ellis, political scientist and professor at the U.S. Army War College’s Institute for Strategic Studies, argues that Trump’s position stems from a strategic military reason, as the two main ports are managed by a Chinese-funded logistics company.
“In my opinion, it’s not about using these ports operated by Hutchison Port for something explicit but rather leveraging all aspects of their proximity and presence to use the Canal in other ways,” Ellis explained to Expediente Público regarding the Asian-origin company.
Hutchison Port Holdings (HPH), a multinational conglomerate headquartered in Hong Kong, operates two of the five major ports along the Panama Canal.
The Balboa Port, on the Pacific Ocean side, and Cristóbal Port, on the Atlantic, can handle thousands of containers annually.
Related: China is eyeing open-pit mining in Panama
In 2016, the company was rebranded as Hutchison Port and now operates in 53 ports across 24 countries worldwide.
“For instance, if a large ship were passing through the ‘Culebra Cut,’ it could sabotage the locks either physically or through cyberattacks, disrupting maritime transit security,” Ellis explained to Expediente Público.
“There is legitimate strategic commercial interest, but also, from the perspective of Chinese intelligence and the Chinese military,” Ellis added.
The People’s Liberation Army might be considering, “‘If we had to fight the U.S. today, what relationships and presence do we have to deploy special forces or intelligence operators to harm the Canal?’” the professor, specializing in military strategy, speculated.
“Unfounded” Concerns
Panamanian international law expert Alonso Illueca argues that concerns over China controlling the Canal are «unfounded and lack any basis.»
Illueca, an attorney with experience in diplomacy, told Expediente Público that the 80-kilometer-long interoceanic route has been administered by Panama for 25 years, in accordance with the Constitution and the organic law of the Panama Canal Authority (ACP), a public entity.
“A very different matter is China’s growing influence in Panama, which manifests in ports and major infrastructure projects near the Canal,” Illueca observed.
However, the expert consulted by Expediente Público believes the Panama issue is part of Trump’s inaugural rhetoric driven by “purely expansionist” motivations.
“China’s influence in Panama is currently concentrated on the control, direct and indirect, of port operations and major infrastructure projects near the Canal, but it does not directly involve the Canal itself. In other words, China does not control the Panama Canal,” Illueca refuted.
A Visit Under Fire
Marco Rubio’s visit to Central America aims to underscore the importance of Latin America in Trump’s foreign policy, according to State Department spokesperson Tammy Bruce.
Rubio will begin the tour in El Salvador on January 31, where he plans to meet with President Nayib Bukele.
The Salvadoran president, ideologically aligned with Washington, also considers China one of his main political partners.
However, relations with Washington remain tense due to the Biden administration’s past criticism of Bukele’s authoritarian leadership style.
Additionally, during his presidential campaign, Trump accused a country of sending gang members to U.S. soil.
“They send all these criminals, drug traffickers, people in prisons, to the United States. He doesn’t say it and tries to convince everyone of the wonderful job he’s doing,” Trump said of Bukele during the campaign.
Salvadoran political scientist Napoleón Campos recalls that “there is an ongoing judicial investigation in New York against Salvadoran gang leaders.”
However, on January 24, Trump used Bukele as an example and spoke with him by phone to refine a joint policy against migration and gangs.
Related: China, the Asian giant that could crush El Salvador’s economy
Campos objects to Trump’s stance on Panama, stating that “his mere threat of a claim is a violation of the UN Charter (United Nations), particularly the provisions on the inviolability of borders.”
In fact, Panama is where Rubio will stay the longest, with a planned three-day visit from February 1 to 3, while the remaining two days will be spent visiting Costa Rica, the Dominican Republic, and Guatemala.
Illueca also underscores the significance of the Secretary of State’s visit to Central American soil following President Trump’s remarks about his interests in the canal.
“Given the circumstances, there should be no threats against the territorial integrity of a political ally like Panama,” Illueca emphasized.
The Panamanian Administration of the Canal
The Panama Canal Authority (ACP) is an autonomous entity created on June 11, 1997, by the Government of Panama.
This occurred when the administration of the interoceanic passage was handed over by the U.S. in compliance with the Torrijos-Carter Treaty, signed in 1977 by leaders Omar Torrijos and Jimmy Carter.
The ACP plays a crucial role in Panamanian society and politics, journalist Dilmar Rosas told Expediente Público, stating that “due to its importance and nature for global trade, it enjoys financial autonomy, its own assets, and the right to manage itself.”
The ACP is composed of 11 directors appointed for a nine-year term by the President of the Republic, the National Assembly, and the Cabinet Council following political negotiations among the three sectors.
Since its inception, the ACP has been led by four administrators, among whom the term of Jorge Luis Quijano (2012–2019) was under public scrutiny.
Quijano’s tenure coincided with the administration of former President Juan Carlos Varela (2014–2019), who established diplomatic relations with China in 2018.
Subsequently, director Jorge Luis González Barrios was dismissed by President Laurentino Cortizo’s administration, which succeeded Varela, due to his close ties with Beijing.
“He was seen as someone who spoke a lot with China and had such a close relationship with them that, in the U.S., it was perceived that he had the potential to affect their strategic and security interests,” an anonymous source told Expediente Público.
When González Barrios left his directorial position, he claimed it was the political cost of being close to Varela when relations with China were established.
A Friendly Call Between Trump and Xi
As Trump’s inauguration approached, the Ministry of Foreign Affairs of the People’s Republic of China announced that President Xi Jinping called his U.S. counterpart on January 17 to congratulate him.
Although the statement only mentions the issue of Taiwan, it notes that “China and the United States will inevitably have some differences,” but “the key is to respect each other’s core interests and major concerns and find appropriate solutions to problems.”
“The Taiwan issue is related to China’s national sovereignty and territorial integrity, and we hope the United States handles it prudently,” the statement reads.
It also adds that “the essence of economic and trade relations between China and the United States is mutual benefit and win-win results, and confrontation and conflict should not be our choice.”
The Toll Dispute
Globally, the Panama Canal continues to be the route through which 57.5% of the total cargo transported on container ships from Asia to the east coast of the United States passes, the same percentage as in 2022, according to the Panama Canal Official Portal.
Against this backdrop, President Trump claimed that Panama charges higher tolls, but Central American authorities reject the accusation.
Additionally: Panama: Six Years of Relations with China That Have Not Yielded Significant Benefits
The current ACP administrator, Ricaurte Vásquez, reminded that the U.S. is among the 40 countries adhering to the Neutrality Treaty, which establishes that all vessels must abide by the same rules.
“The pricing rules are uniform for everyone transiting the canal, absolutely and clearly defined,” Vásquez stated to Panamanian media in response to Washington’s claims.
Expediente Público requested an interview with Vásquez but did not receive a response.
Meanwhile, Saúl Méndez, leader of the main organization of port workers, told Expediente Público that during the Secretary of State’s visit, “it should be clear to Rubio that here in Panama he has absolutely nothing—neither he, nor the Trump administration, nor the U.S. military.”
Méndez leads the National Union of Workers in the Construction Industry and Similar Trades (SUNTRACS), the union that paralyzed Panama in 2024 to expel a Canadian-owned mining company with Chinese shareholders.
“Here, the sovereignty of the Panamanian people over their territory, their canal, and their self-determination will be respected. Under no circumstances will we accept blackmail of any kind,” he insists.
A Key Partner Amid a Global Threat
Rubio’s arrival, as an envoy of the Trump administration, places him in a complex scenario in Panama, where all sectors of society defend national sovereignty.
However, during his Senate hearing, Rubio warned of the geopolitical threat posed by China to democratic values, ever since the fall of the former Soviet Union.
“Panama is a great partner on many other issues, and I hope we can resolve this issue regarding the Canal and its security. We must also continue working cooperatively on a range of shared concerns, including migration,” he said, referencing the humanitarian crisis in the Darién region.
In fact, Professor Evan Ellis believes that Panama has several options to ease the Trump administration’s concerns, including renegotiating the 25-year operating license granted to Hutchison Port.
“We’re likely to see a dual strategy from the Trump administration to negotiate an increase in naval transit tolls, as well as other political resources designed to curb China’s advance,” the political scientist told Expediente Público.
The professor views Rubio’s visit as an opportunity for a fresh start in Trump’s second term, ensuring Panama’s consolidation as a strategic partner for Washington in the region.
