Rubio Demands Panama Reduce Chinese Influence Over Canal or US Will Act

U.S. Secretary of State Marco Rubio (2nd R) meets with Panamanian President José Raúl Mulino at the presidential palace in Panama City on Feb. 2, 2025. Mark Schiefelbein/Pool via AP Photo

U.S. Secretary of State Marco Rubio kicked off his trip to Latin America by meeting with Panamanian leaders, pressing them to urgently address the Chinese regime’s influence over the region.

The top U.S. diplomat shared his national security concerns with Panamanian President José Raúl Mulino and Foreign Minister Javier Martínez-Acha in a Panama City meeting on Feb. 2.

Rubio told them that President Donald Trump has determined that “the current position of influence and control of the Chinese Communist Party over the Panama Canal area is a threat to the canal,” according to State Department spokesperson Tammy Bruce.

Rubio called the status quo “unacceptable” and said the United States will “take measures necessary” unless there are “immediate changes,” according to Bruce.

The talks marked Rubio’s first overseas trip since assuming the post less than two weeks ago. The trip, which includes stops in El Salvador, Costa Rica, Guatemala, and the Dominican Republic, also marks the first time in a century that a U.S. secretary of state has made Latin America the first official destination, reflecting a U.S. desire to counter rising Chinese diplomatic encroachment in the region.

The United States spent a decade building the Panama Canal, which connects the Caribbean Sea with the Pacific Ocean. In 1999, under a 1977 treaty, Panama took control of the 51-mile-long waterway.

The agreement gives the United States the right to defend the canal using military force to guarantee the canal’s neutrality and ensures perpetual U.S. usage of the canal.

Currently, a subsidiary of Hong Kong-based Hutchison Ports operates two ports at the canal’s Atlantic and Pacific entrances. The company has renewed a 25-year contract with Panama allowing it to operate these ports until 2046.

Rubio, a longtime China hawk, has warned that Beijing, which maintains tight control of companies based in Hong Kong, could exploit the ports’ control to shut down the canal in times of conflict with Washington. He told the Panamanian officials that such Chinese influence violates the neutrality treaty.

Mulino, who on Jan. 30 ruled out negotiations over canal ownership, told reporters after the meeting that the talks were very respectful and cordial and that the officials had talked at length to “clear up doubts” from the United States.

The Chinese presence at the canal was among the most important topics in their discussions, he said.

He acknowledged the concerns from Washington and noted Panamanian authorities are auditing the Hong Kong port operator and that they will act accordingly based on their findings.

“The ports do raise doubts but, as I said, so far I have no elements of judgment to opine anything more,” he said, stating also that “the sovereignty of Panama is not in doubt.”

Panama's President Jose Mulino (L) and U.S. Secretary of State Marco Rubio arrive for a meeting at the presidential palace in Panama City on Feb. 2, 2025. Mark Schiefelbein, Pool/AP Photo

Panama severed its ties with Taiwan in 2017 and months later signed onto the Belt and Road Initiative, the Chinese regime’s global infrastructure project that critics said has trapped poor countries in debt.

Mulino said that Panama will not renew the 2017 memorandum of understanding about the initiative once it expires.

The Panamanian leader also suggested a possible expansion of an existing agreement from last July to assist with U.S. deportation efforts.

The expanded deal could pave the way for direct deportations of illegal immigrants hailing from countries such as Venezuela, Colombia, and Ecuador who cross the Darien Gap jungle spanning the Colombia–Panama border, though Mulino said the United States would need to cover the cost.