US and Panama Strengthen Efforts to Counter Chinese Influence Over Panama Canal

Defense Secretary Pete Hegseth's visit highlights deepened defense ties as a Panamanian audit reveals $1.2 billion in unpaid fees by Chinese-linked port operator.

US Defense Secretary Pete Hegseth and Panamanian officials have pledged to jointly 'take back' the Panama Canal from Chinese influence, emphasizing security cooperation.
A Panamanian audit found that Panama Ports, operated by Hong Kong-based CK Hutchison, failed to pay $1.2 billion in concession fees, raising questions about its contract compliance.
CK Hutchison's planned sale of its Panama Canal ports to a US-led consortium led by BlackRock faces delays due to a Chinese antitrust review, complicating the transfer of control.
Panama recently withdrew from China's Belt and Road Initiative, signaling alignment with US efforts to counter Beijing's regional influence.
The Trump administration has proposed increased US military presence in Panama, citing concerns over China's potential surveillance and strategic advantages in the canal region.