In his inaugural address on Capitol Hill, U.S. President Donald Trump reiterated previous claims that the Panama Canal was under Chinese control.
“Above all, China is operating the Panama Canal. We didn’t hand it over to China; we handed it to Panama, and we’re taking it back,” Trump declared.
The Panama Canal, which connects Asia to the East Coast of the Americas, is managed by the Panamanian government through the Panama Canal Authority (ACP). Originally constructed and operated by the U.S., the canal opened in 1914 and was officially transferred to Panama in 1999.
Following Trump’s remarks, Panamanian President José Raúl Mulino issued a strong response, firmly rejecting the claims. “I fully reject President Trump’s statements regarding Panama and its canal during his inaugural address. The canal is, and will remain, under Panamanian control, governed by the principles of permanent neutrality. No foreign nation is interfering in its administration, and the canal is not a concession from anyone,” Mulino stated.
The only connection China has to the canal is through Hong Kong-based Hutchison Ports, which operates the ports of Balboa on the Pacific side and Cristóbal on the Atlantic entrance via its subsidiary, Panama Ports Company (PPC). The 25-year concession granted to PPC was renewed in June 2021. Hutchison Ports is part of CK Hutchison Holdings, a Hong Kong-listed conglomerate that is not directly owned or controlled by the Chinese government.
On Monday, Panama initiated an investigation into the concession held by PPC. The Comptroller General of the Republic announced on social media that auditors had arrived at the company to “conduct a comprehensive audit to ensure the efficient and transparent use of public resources.”
In his speech, Trump also criticized the fees charged to American ships using the canal. “American ships are being severely overcharged and treated unfairly in every way, including the United States Navy,” he said.
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