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| US Secretary of State Marco Rubio visits the Miraflores area of the Panama Canal in Panama City. February 2, 2025 | Photo: AFP |
U.S. Secretary of State Marco Rubio has warned that Washington will take necessary action if Panama does not address China’s growing influence over the Panama Canal. President Donald Trump believes that China has significant control over the canal, which he views as a direct threat.
During his first foreign trip as Secretary of State, Rubio met with Panamanian President José Raúl Mulino in Panama City on Saturday. Following their discussions, Mulino suggested he would review Panama’s agreements with China and Chinese businesses. He also pledged to strengthen cooperation with the U.S. on immigration issues but reaffirmed that his country retains full control over the world’s second-busiest waterway.
The U.S. State Department stated that Rubio, speaking on behalf of President Trump, emphasized that China's presence at the Panama Canal violates the U.S.-Panama treaty and poses a security threat.
A Hong Kong-based company currently operates two ports at the canal’s entrance, a key point of contention. State Department spokesperson Tammy Bruch declared that the status quo is “unacceptable” and that if Panama fails to act, the U.S. will take steps to protect its interests under the treaty.
Rubio did not specify what actions Washington might take or what measures Panama should implement.
Since winning the November presidential election, Trump has repeatedly threatened to take control of the Panama Canal. In his inaugural address on January 20, he reiterated his intention.
The canal, built by the U.S. in the early 20th century, was initially under American control before being fully transferred to Panama in 1999 through a treaty.
Trump has claimed that China effectively controls canal operations and has refused to rule out military intervention. His statements have sparked criticism from both allies and rivals in Latin America.
On Sunday, Trump stated he did not anticipate the need for military force but asserted that Panama had violated its treaty obligations, justifying U.S. intervention. “China is running the Panama Canal,” Trump told reporters. “It wasn’t given to China, it was given to Panama, foolishly.
But they have broken the agreement, and we are either taking it back or something very strong is going to happen. But I don’t think we’ll need troops.”
For his part, Mulino described his meeting with Rubio as cordial and hinted at a reevaluation of certain Chinese business agreements. This includes a 25-year concession granted to Hong Kong-based CK Hutchison Holdings, which operates ports at both entrances to the canal. The contract was renewed in 2021.
Trump’s administration and lawmakers argue that this deal exemplifies China’s increasing influence over the canal and violates the 1977 Panama Canal Neutrality Treaty.
However, the Panamanian government and some experts reject these claims, arguing that the two ports are not part of the canal’s operations. The Panama Canal Authority, an autonomous agency under government oversight, manages the canal.
Mulino also addressed China’s Belt and Road Initiative, confirming that a broad investment agreement between Panama and China, established under previous administrations, will not be renewed. The government is currently reviewing the feasibility of terminating the deal ahead of schedule.
Additionally, Mulino expressed his interest in a direct meeting with President Trump.