US Faces China Challenge in Panama Canal Authority Control

The US Federal Maritime Commission is addressing the growing presence of China in Panama. With President Trump's intent to regain control of the Panama Canal, US officials, including Chair Louis E. Sola, emphasize supporting American businesses and maintaining the canal's independence amidst Chinese infrastructure projects.

The head of the Federal Maritime Commission will testify before a U.S. Senate committee on addressing China's increasing influence in Panama. President Donald Trump has expressed intentions to reclaim the Panama Canal without detailing plans. FMC Chair Louis E. Sola stresses the need to support American businesses in the region.

Sola's written testimony highlights China's pursuit of development contracts in Panama, urging constraints on sole bids by Chinese firms. Senate Commerce Committee Chair Ted Cruz argues Panama is unfairly ceding control of vital infrastructure to China, despite US historical investments in the canal.

Sola assured the Senate that the US possesses options to counteract China's growing regional presence. He emphasized preserving the Panama Canal Authority's independence, while Panama's president defended their management. Last year saw significant US container traffic through the canal, impacted by drought but later alleviated by seasonal rains.

(With inputs from agencies.)