Diplomatic Tensions: U.S., Panama, and the China Question

U.S. diplomat Marco Rubio urges Panama to address U.S. security concerns over Chinese operations near the canal. Despite progress on migration issues, Panama asserts canal sovereignty, rebuffing U.S. pressure over Chinese influence. The dispute highlights ongoing U.S.-China tensions in Latin America, including potential sanctions on Panamanian ships.


Devdiscourse News Desk | Updated: 03-02-2025 02:31 IST | Created: 03-02-2025 02:31 IST
Diplomatic Tensions: U.S., Panama, and the China Question
Marco Rubio

U.S. top diplomat Marco Rubio has issued a stern warning to Panama, urging it to immediately address U.S. security concerns regarding the operations of Chinese businesses near the vital Panama Canal. President Donald Trump has labeled these operations a threat to U.S. national security. Amid these tensions, both nations have managed to make headway on significant migration and business issues during Rubio's visit to Panama City. However, Panama's President Jose Mulino remains firm on the country's sovereignty over the canal, refusing to entertain U.S. pressures.

The U.S. administration, through State Department spokesperson Tammy Bruce, has highlighted Trump's preliminary determination that China's control over the canal area poses a direct threat. Although Trump has not ruled out potential military interventions, this stance has attracted widespread criticism across Latin America. The possibility of imposing fines and restrictions on Panamanian vessels entering the U.S. is also under consideration due to the ongoing dispute.

Despite the diplomatic friction, Mulino signaled openness to revisiting certain Chinese business agreements in Panama, awaiting the results of a detailed audit. Notably, the contentious 25-year concession to CK Hutchison Holdings is under scrutiny. Concurrently, Mulino announced potential expansions to a memorandum of understanding with the U.S. to safely return migrants from the region, while also expressing the importance of direct discussions with Trump on these pressing matters.

(With inputs from agencies.)

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