Panama is under China's indirect control, though the canal was never legitimately handed over to them. It was absurdly handed over to Panama, but breaches in agreements mean we will reclaim it through significant measures.</p><p>Previously, Trump had expressed dissatisfaction over the Panama Canal, citing unfair treatment towards the US navy and business entities. The fees imposed by Panama, according to him, were laughable. Such practices should be halted immediately. If the Panama Canal is not operated safely, efficiently, and reliably, we will demand its complete return to the United States.</p><p>Trump added, “Should moral and legal principles be adhered to, we will insist on the swift return of the Panama Canal to America.”</p><p><strong>What Role Does China Play in the Panama Canal?</strong></p><p>No explicit evidence pinpoints China's government as a direct operator of the Panama Canal. However, the presence of Chinese enterprises in Panama is notable. From October 2023 to September 2024, cargo passing through Panama, accounting for 21.4% of goods, originated from China. After the US, China is the most frequent utilizer of the Panama Canal. In recent years, significant investment has been funneled by China into ports and terminals around the canal.</p><p>Five significant ports are situated near the canal, two of which have been under the management of the Chinese company, Hutchison Port Holdings, since 1997. These include Balboa on the Pacific Ocean side and Cristóbal on the Atlantic's edge.</p><p><strong>Why is Panama Important?</strong></p><p>The Panama Canal holds immense geopolitical significance globally. The 82-kilometer waterway connects the Atlantic and Pacific Oceans. It’s said that 6% of global maritime trade moves through this canal. For the US, the canal is critical. It handles 14% of US trade. Likewise, many South American countries rely heavily on the Panama Canal for import-export activities. If goods are shipped from Asia to the Caribbean, they generally transit through the Panama Canal. Any control or disruption of the canal could severely impact global supply chains.</p><p>The Panama Canal's construction began under France in 1881 but was taken over by the US in 1904, concluding in 1914. The United States maintained control until the canal was handed over to the Panamanian government in 1999. Currently, the Panama Canal Authority oversees its management.</p>

US President Donald Trump stated that America will reclaim Panama and is about to take significant steps towards this. He mentioned to the press that Panama is seemingly controlled by China, despite the canal not being handed over to China. The Panama Canal was handed over to Panama in a foolish manner.
Panama delivers a significant blow to China

Source: aajtak

Since Donald Trump became president, the global stage has been in turmoil. Trump has already stirred tensions by imposing hefty tariffs on neighboring countries like Canada and Mexico. A 10% tariff on China has also been enforced. However, under Trump's immense pressure, Panama has delivered a significant blow to China.

Amidst the pressure regarding the Panama Canal, Panama's President, José Raúl Mulino, announced that his country will not renew its participation in China’s ambitious Belt and Road Initiative (BRI). Panama had joined the initiative in 2017, indicating its aspiration to connect globally. But now, with President Mulino's clear declaration, Panama is set to exit the initiative sooner rather than later.

President Mulino declared that Panama would collaborate with the United States on new infrastructure projects and investments. He emphasized that his government would audit the Panama Ports Company. This company is linked with the Chinese company responsible for operating two ports that connect to the Panama Canal. Mulino noted, “We must wait for the audit's completion before proceeding.”

Previously, US Secretary of State Marco Rubio had communicated with President Mulino and emphasized the need for America to safeguard its rights due to China's influence over Panama. Mulino reassured afterwards, “I don't believe the United States will need to use military force to reclaim Panama.”

Will America Reclaim Panama?

President Trump reiterated his stance, affirming that the US intends to reclaim Panama and is preparing to execute substantial actions. During a media interaction, he remarked,

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