Donald Trump has repeatedly complained about the Panama Canal and its fees, calling the vital shipping corridor a “stupid gift.” [to Panama] It should never have been made,'' and threatened to take it back.
But he has also repeatedly accused China of controlling reality. At his inauguration, President Trump asserted without providing any evidence that the Panama Canal was run by China and we did not give it to them. We gave it to Panama, and we'll take it back. ”
So, how much China-related operations are taking place along the Panama Canal?
Who actually manages the canal?
The 51-mile (82 km) canal, which connects the Atlantic and Pacific oceans, was built and owned by the United States in the early 1900s, but was eventually ceded to Panama in 1977 under a treaty guaranteeing its neutrality. I did. In 2021, the agreement allowing Panama Port Company to continue as operator was extended for 25 years.
The United States is the largest user of the Panama Canal, carrying about three-quarters of the cargo that passes through it each year. China is a distant second.
What kind of influence and presence does China have?
There are ports at each end of the canal, operated by a Hong Kong-based company. This is likely what President Trump was referring to when he said, “China has a presence on both ends of the Panama Canal.” A total of five ports border the canal, with the others owned by foreign companies, including U.S. companies.
In 1996, Panama awarded a Hong Kong company, then called Hutchison Whampoa, the rights to operate the ports of Balboa on the Pacific coast and Cristobal on the Atlantic coast. The agreement did not give Hutchison Whampoa ownership of the port, but it did allow it to operate it on behalf of the Panamanian government.
The port operator is now known as Hutchison Ports and is a subsidiary of CK Hutchison Holdings, a Hong Kong-based conglomerate owned by billionaire Li Ka-shing.
In 1999, the US Department of State said In response to the granting of the concession to Hutchison-Whampoa, the authority investigated the matter extensively but found “no evidence to support the conclusion that the People's Republic of China is in a position to control the operation of the canal.” ” he said.
“China does not participate in the management and operation of the canal and has never interfered in canal affairs,” Chinese Foreign Ministry spokesperson Mao Ning said on Wednesday.
How worried should I be?
While some U.S. officials and analysts say there are legitimate concerns about Chinese companies' large presence in strategically important channels, the real purpose of President Trump's comments is that China's We believe that it is important to limit the growth of the government's diplomatic and economic presence.
In recent years, China has persuaded several countries (including Panama in 2017) to abandon recognition of Taiwan and establish diplomatic relations with Beijing.
Trump's Secretary of State Marco Rubio, a longtime China hawk, said Chinese companies could take control of ports at the behest of the Chinese government and “shut down our ports and disrupt our transportation.” I doubt that there is.
Benjamin Guedan, director of the Washington-based Wilson Center's Latin America program, told AFP that if Beijing wanted to use the Hutchison assets, it would probably be able to pressure them in a war or trade dispute or nationalize them. He said it is possible.
Panama was the first Latin American country to sign up to China's Belt and Road Initiative in 2017. Foreign investment plans are often linked to the Chinese government's geopolitical diplomacy and influence goals. The initiative has raised concerns that it is a form of economic imperialism that gives China too much influence over other countries, often small and poor countries.
Some analysts believe this is the real motive behind President Trump's remarks. Euclides Tapia, a professor of international relations at the University of Panama, said Trump's “false arguments” were designed to hide that Panama wants to “minimize relations with China.” said.
“he [Trump] There is no doubt that they are trying to threaten Panama,” said Natasha Lindstedt, an international relations expert at the University of Essex. “This is either a negotiating tool or a distraction, or both.”
What does Panama say?
Panama's President Jose Raul Mulino denied any foreign influence over the port, saying his country operates it according to principles of neutrality. “The canal is and always will be Panama's,” Mulino said.
The Panama City government also filed a complaint with the United Nations about Trump's threats.
Nevertheless, on Wednesday, Panamanian authorities began an audit of Hutchison Port. The “thorough” investigation “aimed to ensure efficient and transparent use of public resources,” the port authority said. The purpose is to determine whether the company complied with the concession agreement, including proper reporting of income, payments and contributions to the state, the auditor general said.
Hutchison Ports PPC said in a statement that it “has and will continue to have a transparent and collaborative relationship” with Panamanian authorities.
“We remain steadfast in our commitment to comply with all laws and regulations and fully fulfill our contractual responsibilities,” the company said, adding that it has been audited by the inspector general twice to date, both times. It added that it was found to be fully compliant.
