WIDE LENS REPORT

Trump Doctrine Clashes with China’s Expanding Grip on the Panama Canal

03 Feb, 2025
1 min read

PANAMA CITY — U.S. Secretary of State Marco Rubio’s demand that Panama curb Chinese influence over the strategic Panama Canal has reignited tensions over Beijing’s growing footprint in Latin America. The Trump administration’s stance, delivered during Rubio’s visit, marks a sharp escalation in Washington’s resistance to China’s economic and political encroachment, particularly through its Belt and Road Initiative (BRI).

Rubio’s warning—backed by President Donald Trump’s claim that the U.S. may “take back” the canal if necessary—signals an aggressive application of what some are calling the Trump Doctrine: a muscular, sovereignty-first foreign policy that prioritizes rolling back China’s influence in key global chokepoints. The canal, through which roughly 5% of global trade flows, has become an emblem of this geopolitical struggle.

China, through state-linked companies like Hong Kong-based CK Hutchison Holdings, has established a significant presence at both ends of the canal, managing ports and logistics terminals. While Panama retains official sovereignty, U.S. officials argue that Beijing’s commercial control poses a direct challenge to the 1977 U.S.-Panama treaty, which guarantees American intervention rights if neutrality is threatened.

Trump’s rhetoric has gone further than previous administrations, refusing to rule out force to counteract what he describes as a breach of the treaty. “China’s running the Panama Canal,” Trump said over the weekend, calling Panama’s engagement with Chinese firms a violation of its agreement with Washington.

Panamanian President José Raúl Mulino has sought to walk a fine line, reaffirming Panama’s control while signaling a willingness to review its Chinese contracts. His government has already committed to ending its participation in China’s Belt and Road Initiative, an infrastructure development strategy widely seen as a tool for Beijing’s global economic expansion.

The Trump administration’s posture aligns with broader efforts to counteract China’s influence in Latin America, where Beijing has leveraged BRI investments to expand its sway over ports, railways, and critical supply chains. The White House’s message is clear: Chinese encroachment on strategic waterways will not be tolerated.

As protests in Panama highlight domestic unease over U.S. interventionist rhetoric, the canal’s future remains uncertain. What is certain, however, is that Trump’s doctrine—one that prioritizes direct confrontation over diplomatic caution—has set the stage for a geopolitical clash that could reshape the balance of power in the Americas.

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