China's Influence on Panama: A Geopolitical Tension Between Superpowers

In early 2025, the geopolitical landscape was rocked by a claim made by U.S. President Donald Trump, who accused China of illegally controlling the Panama Canal. This bold statement was swiftly refuted by both Panamanian officials and China, who maintained that the canal remains under Panama's sovereign control. While the dispute seemed to be about the Panama Canal, it highlighted a deeper concern: the growing Chinese presence in Latin America and its potential impact on U.S. interests in the region.

The canal itself, a critical passageway for global trade, has long been a symbol of Panama's sovereignty. China’s involvement, particularly through infrastructure investments as part of the Belt and Road Initiative (BRI), has caused unease in Washington. The U.S. has consistently voiced concerns over Chinese influence in the Western Hemisphere, particularly in strategic areas like the Panama Canal, where global shipping routes are essential for international trade.

This dispute intensified when U.S. officials urged Panama to scale back its ties with China, leading to Panamanian President José Raúl Mulino agreeing not to renew Panama’s participation in China's Belt and Road Initiative when the current agreement expires in 2026. The diplomatic tension raises important questions: What does this mean for the future of the Panama Canal? Could there be any economic or political consequences for Panama if it continues its collaboration with China?

As these geopolitical dynamics unfold, the Panama Canal's future—along with the broader relationship between the U.S. and Panama—will be one to watch closely in the coming years.