The Panama Canal, once a testament to American ingenuity, now stands as a strategic vulnerability in the face of escalating tensions with China. Built by the United States at enormous cost and completed in 1914, the canal transformed global commerce and solidified America’s ability to project power. For decades, the canal was not just a shortcut for trade; it was a critical asset that enabled the U.S. to move naval forces quickly between oceans, underpinning both economic prosperity and national security.
That control was relinquished in 1999 under the 1977 Panama Canal Treaty, celebrated by some as a triumph of diplomacy but now widely seen as a strategic blunder. Today, Panama’s management of the canal has opened the door for China to creep in, giving Beijing influence over one of the world’s most strategic waterways. By securing footholds at both ends of the canal through state-owned enterprises like Hutchison Whampoa and COSCO Shipping, China gains the ability to monitor—and potentially impede—U.S. naval movements.
This isn’t just about trade routes. The canal’s strategic importance is magnified in the context of U.S. military readiness. In the event of a conflict over Taiwan, the canal would be a vital passage for U.S. naval assets moving from the Atlantic to the Pacific. Any delay or disruption caused by Chinese influence over the canal could cripple America’s ability to respond effectively, tilting the balance of power in Beijing’s favor.
China’s actions in Panama are part of a broader strategy to control global chokepoints. Through initiatives like the Belt and Road Initiative, Beijing has used infrastructure investments to gain leverage over countries, often leaving them indebted and vulnerable to coercion. In Panama, this has translated into significant Chinese investments and operational control that raise alarms not just for the U.S. but for Panama’s sovereignty.
Critics who argue that reasserting U.S. control over the canal would infringe on Panamanian sovereignty fail to grasp the larger picture. Sovereignty entails responsibility, and Panama’s willingness to allow foreign powers like China to influence the canal jeopardizes the interests of the entire hemisphere. The United States is not seeking to undermine Panama’s independence; it aims to ensure that the canal remains neutral, secure, and free from the manipulations of authoritarian regimes.
The canal’s importance goes beyond trade statistics. With 4% of global commerce passing through its locks and the United States as its top user, the canal underpins not just economic flows but also global stability. Yet, Panama has failed to address critical issues like water shortages that threaten the canal’s long-term viability. If these issues remain unaddressed while China consolidates its influence, the canal risks becoming another asset in Beijing’s arsenal of global coercion.
The U.S. has a vested interest in ensuring the canal’s neutrality, reliability, and security. Reasserting control isn’t about seeking dominance; it’s about safeguarding a critical asset that benefits both the U.S. and Panama. Panama, as a responsible member of the international community, should recognize the broader implications of Chinese control and work with the U.S. to return ownership and operational oversight to American hands.
By doing so, Panama would not only secure its sovereignty but also ensure the canal’s viability for future generations. The Panama Canal was built as a tool of American strategy, and it remains one. Allowing it to fall further under Chinese influence is a risk neither nation can afford. The time has come for Panama to do the right thing and collaborate with the U.S. to restore control over this strategic waterway.
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