Hegseth says U.S. and Panama will "take back" canal "from China's influence"

Defense Secretary Pete Hegseth said the Panama Canal faces "ongoing threats" as he singled out China during a visit to the key trade route on Tuesdau.The big picture: Hegseth's comments following a meeting with Panama President José Raúl Mulino that the U.S. and Panamanian officials would "take back" the key trade route "from China's influence" build on previous warnings from Trump administration officials, and they drew a strong rebuke from Beijing.China did not build this canal.China does not operate this canal.and China will not weaponize this canal. Together, we will take back the canal from China’s influence. pic.twitter.com/CiFCOJJFw6— Pete Hegseth (@PeteHegseth) April 8, 2025The first visit by a U.S. defense secretary to Panama in 21 years comes after President Trump has said Panamanian authorities should either lower fees for U.S. ships to transit the canal or return its control to the U.S.Mulino has previously rejected accusations of Chinese interference, but pledged his government would conduct an audit of Beijing-operated ports at the canal and share findings to the U.S and said Panama wouldn't renew its deal with China over its Belt and Road building initiative.What they're saying: "The United States of America will not allow Communist China or any other country to threaten the canal's operation or integrity," Hegseth said during a ceremony for a U.S.-funded dock at the Vasco Nuñez de Balboa Naval Base in Panama City."To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades," he added.Hegseth pointed to "China-based companies" that "control critical infrastructure in the canal area," referring to two Panama ports that a consortium including the U.S. firm BlackRock is in active discussions to buy from Hong Kong's CK Hutchison.This "gives China the potential to conduct surveillance activities across Panama," he added. "This makes Panama and the United States less secure, less prosperous and less sovereign."The intrigue: After their meeting, Hegseth and Mulino released a joint statement in English and Spanish that included an agreement to work on compensation "for the payment of tolls and charges" for ships passing through the canal.AP notes that only the Spanish version states: "Secretary Hegseth recognized the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas."Representatives for the Pentagon did not immediately respond to Axios' early morning request for comment.The other side: "Who is truly safeguarding the canal's neutrality and prosperity? Who keeps clamouring to 'take back' the canal? Who is the real threat to it?" the Chinese Embassy in Panama said in a statement posted to social media, per a Reuters translation.

Defense Secretary Pete Hegseth said the Panama Canal faces "ongoing threats" as he singled out China during a visit to the key trade route on Tuesdau.The big picture: Hegseth's comments following a meeting with Panama President José Raúl Mulino that the U.S.

and Panamanian officials would "take back" the key trade route "from China's influence" build on previous warnings from Trump administration officials, and they drew a strong rebuke from Beijing.China did not build this canal.China does not operate this canal.

and China will not weaponize this canal. Together, we will take back the canal from China’s influence. pic.

twitter.com/CiFCOJJFw6— Pete Hegseth (@PeteHegseth) April 8, 2025The first visit by a U.S.

defense secretary to Panama in 21 years comes after President Trump has said Panamanian authorities should either lower fees for U.S. ships to transit the canal or return its control to the U.

S.Mulino has previously rejected accusations of Chinese interference, but pledged his government would conduct an audit of Beijing-operated ports at the canal and share findings to the U.S and said Panama wouldn't renew its deal with China over its Belt and Road building initiative.

What they're saying: "The United States of America will not allow Communist China or any other country to threaten the canal's operation or integrity," Hegseth said during a ceremony for a U.S.-funded dock at the Vasco Nuñez de Balboa Naval Base in Panama City.

"To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades," he added.Hegseth pointed to "China-based companies" that "control critical infrastructure in the canal area," referring to two Panama ports that a consortium including the U.S.

firm BlackRock is in active discussions to buy from Hong Kong's CK Hutchison.This "gives China the potential to conduct surveillance activities across Panama," he added. "This makes Panama and the United States less secure, less prosperous and less sovereign.

"The intrigue: After their meeting, Hegseth and Mulino released a joint statement in English and Spanish that included an agreement to work on compensation "for the payment of tolls and charges" for ships passing through the canal.AP notes that only the Spanish version states: "Secretary Hegseth recognized the leadership and inalienable sovereignty of Panama over the Panama Canal and its adjacent areas."Representatives for the Pentagon did not immediately respond to Axios' early morning request for comment.

The other side: "Who is truly safeguarding the canal's neutrality and prosperity? Who keeps clamouring to 'take back' the canal? Who is the real threat to it?" the Chinese Embassy in Panama said in a statement posted to social media, per a Reuters translation..