{"id":2399608,"date":"2025-02-06T08:55:58","date_gmt":"2025-02-06T13:55:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-deal-is-the-first-step-in-countering-china-in-panama\/"},"modified":"2025-02-06T08:57:40","modified_gmt":"2025-02-06T13:57:40","slug":"trumps-deal-is-the-first-step-in-countering-china-in-panama","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-deal-is-the-first-step-in-countering-china-in-panama\/","title":{"rendered":"Trump&#8217;s Deal Is The First Step In Countering China In Panama"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrumps-deal-is-the-first-step-in-countering-china-in-panama%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2399608&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In a significant diplomatic development, Panamanian President Jos\u00e9 Ra\u00fal Mulino \u2064announced that\u200d Panama will withdraw from a China-funded global infrastructure program, \u200cfollowing a meeting wiht U.S. Secretary of State Marco\u200c Rubio. This move is \u2062seen as \u200ba win for the Trump administration, which views China&#8217;s growing influence over the Panama Canal as a national security concern. Historically, the U.S. constructed\u200b the \u2062Canal and retains a stake in its operations through the 1977 Neutrality Treaty, which also guarantees U.S.\u2062 military access to\u200c protect it.<\/p>\n<p>China has become increasingly\u2064 involved in Panama, notably its port \u2063operations and infrastructure projects, \u2062exacerbating U.S.concerns.\u200b Notable investments from Chinese firms, such as Hutchison \u200bPorts&#8217; lease \u200cextension and infrastructure contracts \u2064awarded to Chinese companies, have underscored this growing influence.Responding to Rubio&#8217;s \u200bwarnings about the potential\u2062 need for U.S.\u200c action to uphold treaty \u200crights, Mulino&#8217;s government has opted to audit these \u2062Chinese operations and has abandoned plans to renew its participation in Beijing&#8217;s infrastructure initiatives.<\/p>\n<p>Trump has reiterated his\u2063 commitment to \u200dcountering China&#8217;s influence \u2062and hinted \u2064at serious measures to ensure\u2062 the Canal\u2019s neutrality. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-orders-dod-to-send-firefighters-to-california-washington-examiner\/\" title=\"Biden orders DOD to send firefighters to California ... Washington Examiner\">situation remains dynamic<\/a>, with potential implications for U.S. strategic interests in\u2064 the \u200dregion moving forward.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>After meeting with U.S. Secretary of State Marco Rubio, Panamanian President Jos&eacute; Ra&uacute;l Mulino <a href=\"https:\/\/www.wsj.com\/world\/americas\/rubio-calls-status-quo-at-panama-canal-unacceptable-as-trump-renews-vow-to-seize-it-6c7d9133?mod=americas_news_article_pos1\" target=\"_blank\" rel=\"noreferrer noopener\">announced<\/a> that Panama will back out of the China-funded global infrastructure program. This decision is a notable victory for the Trump administration, but more action is needed to address China&rsquo;s influence over the Panama Canal.<\/p>\n<p>The United States constructed the Panama Canal in the early 20th century, later returning control to Panama through a treaty signed by former President Jimmy Carter in 1977. The Canal remains vital for U.S. economic and strategic interests. According to <a href=\"https:\/\/www.csis.org\/analysis\/key-decision-point-coming-panama-canal\" target=\"_blank\" rel=\"noreferrer noopener\">the Center for Strategic and International Studies (CSIS)<\/a>, the Panama Canal is &ldquo;a major gateway between the Atlantic and Pacific Oceans and a provider of lower shipping costs for U.S. and global trade.&rdquo; Importantly, <a href=\"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/MABR-07-2017-0014\/full\/html#:~:text=The%2520total%2520cargo%2520through%2520the,ending%2520up%2520in%2520the%2520USA.\" target=\"_blank\" rel=\"noreferrer noopener\">more than 60 percent<\/a> of the goods that pass through the Canal either originate in or are destined for U.S. markets, making equal access essential for U.S. national security and economic well-being.<\/p>\n<p>Over the years, China has emerged as the second-largest user of the Panama Canal, regarding it as a key entry point for exerting its economic, diplomatic, and political influence throughout Latin America. The last three decades have seen an increase in China&rsquo;s economic endeavors in Panama.<\/p>\n<p>Since 1997, when Beijing took control of Hong Kong, Hutchison Ports, a subsidiary of Hong Kong-based CK Hutchison Holdings, has been operating the Balboa and Cristobal ports on the Panama Canal. In 2022, the Panamanian government extended Hutchison&rsquo;s lease for these ports for an additional 25 years.<\/p>\n<p>During Trump&rsquo;s first term, China&rsquo;s economic and political influence in Panama grew significantly. In 2016, Landbridge Group, a prominent Chinese firm, made headlines by acquiring control of Margarita Island, the largest port on the canal&rsquo;s Atlantic side, for a staggering <a href=\"https:\/\/www.thetrumpet.com\/13973-china-buys-panamas-largest-port\" target=\"_blank\" rel=\"noreferrer noopener\">$900 million<\/a>. Following this move, Landbridge established a subsidiary named Panama Colon Container Port Inc. (PCCP), partnering with China Communications Construction Company (CCCC) and the China Harbor Engineering Company (CHEC) to develop a deep-water port specifically designed for mega-ships.<\/p>\n<p>A year later, following Beijing&rsquo;s intense campaign to politically isolate Taiwan, Panama abruptly <a href=\"https:\/\/www.bbc.com\/news\/world-latin-america-40256499\" target=\"_blank\" rel=\"noreferrer noopener\">terminated<\/a> its long-standing diplomatic relationship with Taiwan. The Panamanian government claimed this decision was made to uphold the &ldquo;One China&rdquo; policy, asserting that Taiwan is part of China. Shortly thereafter, Panama became the <a href=\"https:\/\/dialogue.earth\/en\/business\/26121-belt-and-road-the-new-face-of-china-in-latin-america\/\" target=\"_blank\" rel=\"noreferrer noopener\">first country<\/a> in Latin America to sign a cooperation agreement under China&rsquo;s &ldquo;One Belt and One Road&rdquo; (OBOR) infrastructure initiative. <a href=\"https:\/\/thefederalist.com\/2017\/06\/12\/chinas-project-century-aims-unseat-u-s-worlds-dominant-power\/\" target=\"_blank\" rel=\"noreferrer noopener\">OBOR<\/a> is more than a China-funded global infrastructure project; it represents China&rsquo;s strategic maneuvering to expand access to critical locations and resources around the world, while simultaneously creating a robust market for Chinese exports.<\/p>\n<p>China&rsquo;s commitment to Panama is evident, especially following the visit of Communist Party Secretary Xi Jinping in 2018. Since that visit, Chinese involvement in and around the Panama Canal has surged. The Panamanian government awarded a substantial <a href=\"https:\/\/www.france24.com\/en\/20181205-panama-awards-14-bn-bridge-project-chinese-group\" target=\"_blank\" rel=\"noreferrer noopener\">$1.4 billion<\/a> contract to a Chinese consortium for the construction of a bridge over the Panama Canal. Furthermore, the China State Construction Engineering Corporation (CSCEC) was granted a <a href=\"https:\/\/lapost.us\/?p=12397\" target=\"_blank\" rel=\"noreferrer noopener\">$193 million<\/a> contract to build the Amador Convention Center, strategically located near the Panama Canal estuary that opens to the Pacific Ocean. In the same year, China&rsquo;s Shanghai Gorgeous Group initiated the <a href=\"https:\/\/www.prensa.com\/impresa\/economia\/Segunda-planta-gas-operaria_0_5124987533.html\" target=\"_blank\" rel=\"noreferrer noopener\">construction<\/a> of a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wind-farms-dont-just-hurt-the-environment-and-boost-china-theyre-ugly-as-sin\/\" title=\"Wind Farms Don\u2019t Just Hurt The Environment And Boost ..., They\u2019re Ugly As Sin\">natural gas-fired power plant<\/a> at the Atlantic exit of the Panama Canal.<\/p>\n<p>Huawei, China&rsquo;s telecom giant with Chinese military connections, has <a href=\"https:\/\/thediplomat.com\/2023\/03\/chinas-uneven-military-political-and-commercial-advance-in-panama\" target=\"_blank\" rel=\"noreferrer noopener\">established<\/a> a regional hub within the Panama Canal&rsquo;s Col&oacute;n Free Trade Zone and has installed its &ldquo;Safe City Technology&rdquo; (SCT) in the area. This <a href=\"https:\/\/amzn.to\/3YuVZYV\">invasive surveillance system includes facial recognition cameras<\/a>, enabling China to monitor activities in and around the Panama Canal.<\/p>\n<p>According to a U.S. Congressional report, Panama has received <a href=\"https:\/\/www.aei.org\/china-global-investment-tracker\/\" target=\"_blank\" rel=\"noreferrer noopener\">$2.5 billion<\/a> in investments from China since 2005, making it the largest recipient of Chinese investment in Latin America as of 2022. China&rsquo;s escalating involvement in the Panama Canal is a serious issue that demands attention from the United States to safeguard its vital interests in this strategically crucial region.<\/p>\n<p>According to the <a href=\"https:\/\/nsarchive.gwu.edu\/briefing-book\/2025-02-03\/panama-canal-treaty-declassified\" target=\"_blank\" rel=\"noreferrer noopener\">Neutrality Treaty<\/a> signed between Panama and the United States in 1977, only Panama is allowed to operate the Canal and station military forces to ensure &ldquo;fair access for all nations and nondiscriminatory tolls.&rdquo; The treaty also stipulates that the United States can use its military to defend the Panama Canal against any threats to its neutrality, thus ensuring perpetual U.S. access to the Canal.<\/p>\n<p>President Trump has identified China&rsquo;s growing influence in the Panama Canal as a national security risk and a violation of the Neutrality Treaty. As a result, he has not ruled out the possibility of using military force to regain control of the Panama Canal.<\/p>\n<p>Secretary of State Marco Rubio&rsquo;s choice to visit Panama as his first stop powerfully signals the Trump administration&rsquo;s resolve to combat China&rsquo;s growing influence in the Western Hemisphere. Rubio <a href=\"https:\/\/www.wsj.com\/world\/americas\/rubio-calls-status-quo-at-panama-canal-unacceptable-as-trump-renews-vow-to-seize-it-6c7d9133?mod=americas_news_article_pos1\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a> warned Panama&rsquo;s president that, &ldquo;Absent immediate changes, it would require the United States to take measures necessary to protect its rights under the treaty.&rdquo;<\/p>\n<p>Rubio&rsquo;s warning had a significant impact. President Mulino of Panama immediately announced that his country wouldn&rsquo;t renew its 2017 agreement to participate in China&rsquo;s infrastructure program. Mulino further revealed that his government has initiated <a href=\"https:\/\/www.scmp.com\/news\/hong-kong\/politics\/article\/3295755\/panamas-audit-hong-kongs-hutchison-aims-counter-us-canal-narrative\" target=\"_blank\" rel=\"noreferrer noopener\">audits of Hutchison<\/a>, the Hong Kong-based company managing two ports within the Panama Canal.<\/p>\n<p>Mulino&rsquo;s announcement marks a foreign policy victory for the Trump administration. After four years of Biden administration&rsquo;s foreign policy failures, a win is refreshing. Still, Mulino&rsquo;s concession does not address ongoing concerns about China&rsquo;s extensive influence over the Panama Canal through various infrastructure projects that Chinese companies have built and continue to operate. It probably explained why instead of taking a victory lap, Trump <a href=\"https:\/\/www.wsj.com\/world\/americas\/rubio-calls-status-quo-at-panama-canal-unacceptable-as-trump-renews-vow-to-seize-it-6c7d9133?mod=americas_news_article_pos1\" target=\"_blank\" rel=\"noreferrer noopener\">reiterated<\/a> &ldquo;We&rsquo;re taking it back, or something very powerful is going to happen.&rdquo; <\/p>\n<p>It will be interesting to see what decisive measures he plans to take to counter China&rsquo;s influence and ensure the Panama Canal&rsquo;s neutrality.<\/p>\n<hr>\n<div>\n<p>      Helen Raleigh, CFA, is an American entrepreneur, writer, and speaker. She&#8217;s a senior contributor at The Federalist. Her writings appear in other national media, including The Wall Street Journal and Fox News.  Helen is the author of several books, including &#8220;<a href=\"https:\/\/www.amazon.com\/Confucius-Never-Said-Helen-Raleigh\/dp\/1499185278\/ref=sr_1_1?dchild=1&amp;keywords=Helen+Raleigh+Confucius+Never+Said&amp;qid=1606079469&amp;sr=8-1\">Confucius Never Said<\/a>&#8221; and &ldquo;<a href=\"https:\/\/www.amazon.com\/Backlash-How-Chinas-Aggression-Backfired\/dp\/1736008501\/ref=tmm_pap_swatch_0?_encoding=UTF8&amp;qid=1606006113&amp;sr=8-1\">Backlash: How Communist China&#8217;s Aggression Has Backfired<\/a>.&#8221; Her latest book is the 2nd edition of <a href=\"https:\/\/www.amazon.com\/Broken-Welcome-Mat-unAmerican-immigration-ebook\/dp\/B0C44QSPJ9\/ref=sr_1_3?crid=3HFXEVT236ZRW&amp;keywords=The+Broken+welcome+mat+book&amp;qid=1683127487&amp;sprefix=the+broken+welcome+mat+book%2Caps%2C135&amp;sr=8-3\">&ldquo;The Broken Welcome Mat: America&rsquo;s UnAmerican immigration policy, and how we should fix it.&rdquo;<\/a>   Follow her on Parler and Twitter: @HRaleighspeaks.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Panama withdraws from China&#8217;s infrastructure program, a win for Trump<\/p>\n","protected":false},"author":536,"featured_media":2399609,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2025\/02\/54303274341_3883d364c5_k.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4501,3715,3634],"class_list":["post-2399608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-china","tag-deal","tag-trump"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2025\/02\/54303274341_3883d364c5_k.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2399608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/536"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2399608"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2399608\/revisions"}],"predecessor-version":[{"id":2399612,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2399608\/revisions\/2399612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2399609"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2399608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2399608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2399608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}