U.S. Defense Secretary Warns of China’s Growing Influence in Panama Canal

During a recent visit to Panama, Defense Secretary Pete Hegseth issued a stark warning about China’s increasing efforts to gain influence over the Panama Canal through infrastructure investments and political leverage. He emphasized that the U.S. had been “asleep at the wheel” in recent years, allowing Beijing to expand its reach in a region critical to global trade and American strategic interests.

In response, Hegseth announced two major developments aimed at reversing this trend. First, U.S. military and auxiliary vessels will now receive “first and free” passage through the canal under a new bilateral agreement. Second, Fort Sherman, a decommissioned U.S. military base near the canal, will be reopened as part of a joint security initiative with Panama. These moves mark a renewed U.S. commitment to securing influence and presence in the region.

Hegseth also praised Panama’s decision to withdraw from China’s Belt and Road Initiative, viewing it as a significant geopolitical shift. He framed the Panama Canal as “key terrain” and stated that defending it from authoritarian influence is essential to American national security. The U.S. presence in Panama is being reestablished not only to counter China’s surveillance and port development projects but also to signal a broader strategic pivot in Latin America.