Santiago Pรฉrez and Kejal Vyas of The Wall Street Journal report that the U.S. is concerned over Chinese infrastructure projects around the Panama Canal, which the Trump administration views as a security threat. While Panama maintains control over the canal, the U.S. worries about Chinaโs growing influence. Despite this, Panama continues to balance its economic ties with both the U.S. and China, being cautious of strategic dependence on Beijing. They write:
President Trumpโs reasons for wanting control of the Panama Canal can be found at either end of the interoceanic waterway.
Every day, dozens of cargo ships pass by blue cranes at a port near the Pacific Ocean entrance, the towering skyline of Panama City visible across the horizon. About eight hours later, they drift past another terminal stacked with containers as they exit into the Atlantic.
These facilities are run by a giant Hong Kong port operator, Hutchison Whampoa. And that is the crux of the problem for the Trump administration, which sees the Chinese infrastructure that has been built up around the canal in the past three decades as a national-security threat.
โChina is operating the Panama Canal, and we didnโt give it to China,โ Trump said in his inaugural address, referring to the 1977 treaty that handed control of it to Panama. โWe gave it to Panama, and weโre taking it back.โ […]
For now, American influence holds sway. After Panama cut diplomatic ties with Taiwan, Beijing proposed building an embassy near the canalโs Pacific entrance on an abandoned U.S. base. Then-U.S. Ambassador to Panamaย John Feeleyย said he complained to the government here.
โThe symbolic effect of seeing the Chinese flag at the mouth of the canal would have been poorly received by the U.S., Panamaโs traditional friend,โ Feeley said. โThey canned that.โ
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