NewsUS secures deal with Panama amid rising China tensions

US secures deal with Panama amid rising China tensions

US Secretary of Defence Pete Hegseth warns against China's growing presence in the Western Hemisphere, which threatens the Panama Canal. Hegseth also announces an agreement with Panama regarding the canal's security.

Pete Hegseth
Pete Hegseth
Images source: © PAP | PAP/EPA/Walter Hurtado

What do you need to know?

  • Chinese presence in the region: US Secretary of Defence Pete Hegseth pointed out the increasing Chinese presence in the Western Hemisphere, which may threaten the Panama Canal.
  • Agreement with Panama: Hegseth announced the conclusion of a contract with Panama to give American warships priority passage through the canal.
  • China's reaction: The Chinese Embassy in Panama criticised US statements, accusing Washington of "blackmail."

What are the US concerns?

During a visit to Panama, US Secretary of Defence Pete Hegseth emphasised that Chinese companies are taking control of strategic areas and infrastructure in the region. "China's military has too large of a presence in the Western Hemisphere. (...) Make no mistake, Beijing is investing and operating in this region for military advantage and unfair economic gain," Hegseth argued.

What is the US planning?

Hegseth announced an agreement with Panama to give American warships priority passage through the Panama Canal. He also urged regional governments to cooperate in deterring China and countering threats from drug cartels and uncontrolled immigration.

How is China reacting?

The Chinese Embassy in Panama responded critically to US statements, accusing Washington of using "blackmail" to further its interests. It stressed that Panama's decisions on trade partners are its "sovereign right."

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