Panama’s President José Raúl Mulino has publicly dismissed recurring U.S. allegations of Chinese Communist Party influence over the Panama Canal, calling the claims ‚Äúpure lies‚Äù during a fiery press briefing. The dispute erupted ahead of U.S. Southern Command Admiral Alvin Holsey’s visit, which included discussions about countering Beijing’s role in the critical waterway.
‚ÄúWe aren’t going to speak about what isn’t reality,‚ÄùMulino declared, emphasizing Panama’s refusal to entertain what he termed baseless narratives. His administration instead aims to focus on bilateral priorities like migration control and trade.
The friction centers on China Merchants Port Holdings, a Hong Kong-based firm operating terminals at both canal entrances. While Panama audits its 25-year port management extension, Mulino clarified:
“China has never participated in canal operations.”
Key points driving tensions include:
- U.S. concerns about strategic infrastructure under Chinese-linked entities
- Panama’s audit of port contractor compliance
- Debates over military fee structures for canal transits
Admiral Holsey’s meetings with canal authorities underscored the waterway’s geopolitical significance. As Panama lobbies Washington to reshape media narratives, historical grievances resurface ‚Äì particularly reminders of America’s 1904-1999 canal control period terminated by the Carter-Torrijos treaties.
With China being Panama’s largest trade partner post-2017 diplomatic recognition, analysts suggest this clash reflects broader U.S.-China competition across Latin American infrastructure projects. The canal handles 3% of global maritime trade, making its governance a persistent flashpoint in hemispheric power dynamics.