As for operations, the Panama Canal Authority is the autonomous legal entity that administers the canal. It is based on the Panamanian constitution and an organic law of 1997.
Trump’s claim boils down to the fact that two of the five ports at either end of the canal are operated by a subsidiary of a Hong Kong-based conglomerate CK Hutchison, with stakes in 52 ports across 26 countries.
At his confirmation hearing for the position of secretary of state, Marco Rubio raised concerns of a foreign power’s “ability to turn the canal into a choke point in a moment of conflict” through the companies that are “not independent”.
UNDERLYING CONCERNS ABOUT CHINESE PRESENCE IN LATIN AMERICA
Trump’s claims regarding the Panama Canal may be dubious, but it should be seen as a shorthand for a more assertive Latin America policy to push back against China’s expanding presence in the region.
Back in 2017, Panama switched its diplomatic recognition from Taiwan to China. The Dominican Republic, El Salvador, Nicaragua and Honduras followed.
The year after, Panama signed up to Beijing’s Belt and Road Initiative, again the first in the region to do so. By December 2024, another 21 Latin American countries had joined the initiative.
