China’s Influence on the Panama Canal: A Growing Concern for U.S. National Security
Recent statements from Sen. Ted Cruz have highlighted escalating tensions surrounding China’s involvement with the Panama Canal, which he argues poses “acute risks to U.S. national security.” Addressing lawmakers during a Senate Committee on Commerce, Science & Transportation hearing, the Texas Republican emphasized the concerning footprint of the Chinese Communist Party (CCP) in this crucial global shipping route.
Chinese Interests in the Canal
Sen. Cruz pointed out two significant issues raised by former President Donald Trump: “the danger of China exploiting or blocking passage through the canal” and “the exorbitant costs for transit.” Cruz elaborated that Chinese enterprises currently control container ports on either side of the canal, effectively granting them the means to observe and, if necessary, disrupt shipping operations.
“Chinese companies are right now building a bridge across the canal at a slow pace so as to take nearly a decade,” Cruz explained. “This partially-completed bridge gives China the ability to block the canal without warning, while the ports provide an advantageous position for monitoring.” Given these developments, Cruz firmly stated, “This situation poses acute risks to U.S. national security.”
The Economic Consequences
Cruz also delved into the economic repercussions of this arrangement, noting that the high fees associated with canal transit disproportionately impact American consumers. “U.S. cargo accounts for nearly three-quarters of canal traffic. U.S. Navy vessels are subjected to additional fees that apply solely to warships, while canal profits consistently exceed billion annually,” he said. Cruz underscored that these funds originate from American taxpayers and consumers, as they face rising costs for goods transported via the canal.
U.S. Diplomacy and Panamanian Denials
Amid these concerns, Secretary of State Marco Rubio is scheduled to embark on his inaugural international trip to Panama. This journey underscores the U.S. government’s commitment to addressing the growing Chinese influence in the region. In response to the allegations of Chinese manipulation, Panamanian President José Raúl Mulino firmly asserted, “There is no presence of any nation in the world that interferes with our administration,” as reported by the Associated Press.
Chinese Expansion in Panama
Contrary to the Panamanian government’s assertions, Federal Maritime Commission Chairman Louis Sola testified that “Since 2015, Chinese companies have increased their presence and influence throughout Panama.” He detailed that Panama’s membership in the Belt and Road Initiative, coupled with the severance of diplomatic ties with Taiwan, has afforded Chinese firms the opportunity to pursue extensive development contracts, many of which border or impact the Panama Canal.
These contracts, according to Sola, often occur without competitive bidding, and labor laws have been waived, leaving the Panamanian populace questioning the benefits of such agreements. Sola also expressed concern about the fact that many of these companies are state-owned and, in some instances, are affiliated with the People’s Liberation Army (PLA) of China. “We must address the significant growing presence and influence of China throughout the Americas and in Panama specifically,” he cautioned.
A Militaristic Interest?
Further compounding these anxieties, Cruz indicated during the hearing that the CCP appears to harbor a “militaristic interest in the canal.” He also asserted that Panama has become a “bad actor,” noting its history of registering vessels linked to Iran’s ghost fleet, which Cruz says has funneled substantial oil revenues to Iran, enabling it to fund global terrorism.
“We cannot turn a blind eye if Panama exploits an asset of vital commercial and military importance, and we cannot stay idle while China is on the march in our hemisphere,” Cruz concluded, reiterating the urgency of the matter.
Conclusion: A Critical Juncture
The implications of China’s growing influence on the Panama Canal are far-reaching, encompassing economic, military, and diplomatic dimensions. As U.S. lawmakers articulate their concerns, the response from the international community, particularly in the form of strategic diplomacy, will be paramount in ensuring the stability and security of this vital shipping passage.
Fox News’ Nick Kalman and Bradford Betz contributed to this report.