The Fight for the Panama Canal
U.S. Influence, Chinese Expansion, and the Battle Over a Global Trade Lifeline
Image of a vessel traveling through the Panama Canal.
The Panama Canal is an artificial waterway in Panama, connecting the Caribbean Sea and Pacific Ocean.
It has long been a focal point of international interest, given its strategic importance in global trade. Recent developments have brought the canal back into the spotlight, particularly concerning U.S. foreign policy, China's involvement, and historical perspectives on its control.
Understanding the Panama Canal’s history is key to grasping today’s discussions about it. The concept of engineering a canal through Panama dates back to the 16th century, with Spain being the first to envision such a passage during the colonial era.
However, it was the United States that played a pivotal role in the canal's realization. In the early 20th century, under President Theodore Roosevelt, the U.S. supported Panama's independence from Colombia and subsequently secured rights to construct and control the canal.
The Panama Canal was completed in 1914 and remained under U.S. control until the Torrijos–Carter Treaties of 1977 set the terms for its eventual transfer to Panama, which was completed on December 31, 1999.
The Communist Goals and the Internationalization of the Canal
In 1963, a document titled "Communist Goals" was entered into the U.S. Congressional Record, outlining 45 objectives attributed to communist strategies.
Originally listed in Cleon W. Skousen’s book, “The Naked Communist,” these goals highlight the extent to which communist influence has shaped American policies and institutions.
Notably, goal 44 sought to "Internationalize the Panama Canal." a move seen as an attempt to weaken U.S. strategic advantages and economic interests by placing the canal under international control, thereby reducing American influence over this vital maritime route.
China's Belt and Road Initiative and Its Involvement in Panama
China's Belt and Road Initiative (BRI), launched in 2013, is China's global development strategy aimed at enhancing China’s influence throughout the world by funding extensive infrastructure projects. By investing in ports, roads, and other infrastructure in developing countries, China (particularly the CCP) is actively seeking to expand its economic and strategic influence.
Panama joined the BRI in 2017, welcoming Chinese investments in various sectors, including ports and logistics. This move raised concerns in the U.S. about potential shifts in influence over the Panama Canal, given its strategic importance in global trade.
Recent Developments: U.S. Concerns and Panama's Response
In January of 2025, U.S. Secretary of State Marco Rubio visited Panama to express concerns over China's growing involvement in the canal's operations. Following discussions, Panamanian President José Raúl Mulino announced that Panama would not renew its agreement to participate in China's Belt and Road Initiative, signaling a shift in its foreign policy.
Map of the route the canal takes through Panama, connecting the Pacific Ocean with the Atlantic Ocean.
This is a huge win for the United States.
Additionally, the U.S. State Department reported that Panama will allow U.S. government vessels to utilize the canal without fees, a move that will save the U.S. millions of dollars annually.
President Trump's Proposal to Control the Canal
President Donald Trump recently advocated for the United States to reclaim control over the Panama Canal, citing concerns about increased fees and Chinese influence.
He has suggested that the original terms of the canal's transfer have been violated and has not ruled out the use of military force to reassert U.S. control.
The Panama Canal is vital to global trade, and its governance remains a key international issue and President Trump’s push to reassert American interests is long overdue.
The canal’s future is shaped by historical context, strategic interests, and shifting geopolitical dynamics. This is a developing situation, and we will provide updates as new details emerge.
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