Overview

• President Trump has criticized Panama for allegedly unfair tolls on U.S. ships and accused China of controlling the canal, though no evidence supports the claim of Chinese operational control.
• A nonbinding resolution introduced by Republican senators urges Panama to cut ties with Chinese entities and calls for increased U.S. investment in canal infrastructure.
• Panama firmly denies foreign influence over the canal, with its president asserting the country's sovereignty and neutrality as guaranteed by longstanding treaties.
• Chinese involvement is limited to port operations at both ends of the canal through a Hong Kong-based company, which operates under Panamanian government oversight.
• Trump's rhetoric aligns with broader U.S. concerns over China's expanding economic influence in Latin America, particularly through its Belt and Road Initiative.