China’s Influence in Panama Under Scrutiny After Trump Issues Warning Over Canal

Panamanian President Jose Raul Mulino responded by saying ‘every square meter of the Panama Canal’ belongs to Panama.

Two cargo ships pass each other during their entry and exit to the Panama Canal at the Pacific Ocean near Panama City on Oct. 6, 2024. Martin Bernetti/AFP via Getty Images

President-elect Donald Trump’s comment earlier this week about the United States potentially regaining control of the Panama Canal has brought renewed attention to communist China’s expanding influence in the Latin American country.

The Panama Canal, which opened in 1914 after 10 years of construction by the United States, was returned to Panama under a 1977 deal signed by President Jimmy Carter. In 1999, Panama took full control of the canal, which is now one of the busiest shipping lanes in the world, connecting the Pacific Ocean and the Caribbean Sea.