The Chinese embassy in Panama on Sunday pushed back after U.S. Secretary of State Marco Rubio demanded "immediate changes" during his visit to the Central American country.
Newsweek reached out to the State Department with a written request for comment.
Why It Matters
President Donald Trump has repeatedly claimed China controls the Panama Canal, which would violate the agreement that guaranteed its neutrality and saw the U.S. relinquish control of the canal and all areas in what had been the Panama Canal Zone in 1999. Trump has pledged to "take it back" and has not ruled out the use of force.
Panamanian President José Raúl Mulino has stressed control of the canal, which is run by the government-run Panama Canal Authority, is "nonnegotiable." China denies any involvement in the operation of the 51-mile waterway.
What To Know
During discussions with Mulino and Panamanian Foreign Minister Javier Martínez-Acha during Rubio's visit to Panama City, his first foreign trip as secretary of state, Rubio reiterated Trump's concern the canal has fallen under Chinese influence.
Rubio warned that without "immediate changes," Washington would take necessary measures to safeguard its rights, according to a press release from State Department spokesperson Tammy Bruce.
Later on Sunday, China's embassy in Panama drew a contrast between its historical ties with the Central American country and those of the United States.
"During their visit to Panama, the U.S. delegation never forgets China. We have some photos to share with Panamanian and American friends who love peace and development," the diplomatic mission wrote on X (formerly Twitter).
The post featured a photo from a protest on January 9, 1964, now commemorated in Panama as Martyrs' Day, over the right to raise the national flag within the U.S.-controlled zone that extended five miles on either side of the canal. The protest led to clashes with U.S. troops and 21 deaths.
Accompanying that image was a photo of an issue of Chinese Communist Party newspaper the People's Daily in which then-party Chairman Mao Zedong expressed support for the "patriotic and just struggle of the Panamanian people."
Rubio secured two major concessions from Panama during his visit.
First, the country will not renew its 2017 memorandum of understanding to join China's Belt and Road Initiative, the trillion-dollar global infrastructure initiative championed by President Xi Jinping, Mulino said.
Panama will also grant U.S. Navy ships free passage through the canal. Trump during his January 20 inaugural address had accused the country of "severely" overcharging American vessels including naval vessels.
What People Are Saying
Panamanian President José Raúl Mulino told the press Sunday: "I don't feel that there is any real threat at this time against the treaty, its validity, or much less of the use of military force to seize the canal."
U.S. Secretary of State Marco Rubio wrote on X: "The Panama Canal is vital to America's national and economic security interests. We must remain vigilant in protecting this vital asset from the Chinese Communist Party."
What Happens Next?
The Trump administration has not come forward with evidence of Chinese involvement in the Panama Canal's operation.
A subsidiary of Hong Kong-based company Hutchison Ports operates a port on both the Pacific and Atlantic sides of the canal. Panama's comptroller's office has launched an audit of these ports. The Chinese-linked company has pledged to be transparent and cooperative.
Update 2/5/25, 12:26 p.m. ET: This article has been updated with additional information.
About the writer
Micah McCartney is a reporter for Newsweek based in Taipei, Taiwan. He covers U.S.-China relations, East Asian and Southeast Asian ... Read more