The United States and Panama are deepening cooperation to counter expanding Chinese influence in the Panama Canal, a strategic waterway vital to global trade, according to top U.S. officials.
Defense Secretary Pete Hegseth confirmed that the two nations are actively working to reassert shared control over infrastructure and commercial interests linked to the canal, amid rising concerns about China’s footprint in the region. Washington has expressed alarm over Beijing’s increasing presence through state-backed investments and operational contracts held by Chinese-linked firms near key canal zones.
The initiative includes enhanced intelligence sharing, increased maritime security coordination, and economic partnerships aimed at reducing Panama’s reliance on Chinese funding for logistics and infrastructure. Hegseth noted that Panama remains a critical partner in safeguarding the flow of goods and preserving regional stability.
While Panama retains sovereignty over the canal, Chinese companies have in recent years secured stakes in port operations and logistical hubs surrounding the waterway. U.S. officials believe this trend poses long-term risks to freedom of navigation and supply chain resilience.
American diplomats and defense leaders are reportedly assisting Panama in developing alternative investment pathways to minimize Beijing’s leverage. Joint military training exercises and security assessments are also underway to ensure that canal operations remain protected from foreign coercion or manipulation.
Panama’s government has not publicly confirmed any intent to sever existing commercial ties with Chinese entities but has signaled interest in reassessing foreign contracts that could compromise national autonomy or raise transparency concerns.
The renewed U.S.-Panama alliance reflects Washington’s broader strategy to push back against China’s influence across Latin America by reinforcing democratic partnerships, economic independence, and regional defense cooperation.
As global competition intensifies, the Panama Canal remains a key geopolitical flashpoint—one where infrastructure control and economic sovereignty continue to intersect with broader international power dynamics.