Trump Must Resist Beijing’s Attempts to Sabotage America’s Panama Deal

In March, the American financial powerhouse BlackRock announced that a group of investors it led had reached a deal with Hong Kong-based CK Hutchison Holdings to secure U.S. control over two strategically located ports operated by Hutchison at the Panama Canal. In response, China has been attempting to undermine this agreement. Beijing’s latest stance is to withhold its approval unless a Chinese state-owned enterprise is included as a partner in the deal.

The Panama Canal is a crucial gateway between the Atlantic and Pacific Oceans and is vital to the economic and strategic interests of the United States. Approximately 70 percent of the goods that pass through the canal either originate from or are destined for U.S. markets, making the U.S. the largest user of the canal.

China views the Panama Canal as a strategic asset for expanding its economic and geopolitical influence in Latin America. In recent years, Beijing has significantly increased its investments in Panama through its “One Belt, One Road” global infrastructure initiative, making it the second-largest user of the canal. This growing presence has raised national security concerns in the United States. Sen. Ted Cruz has pointed out that the two ports operated by CK Hutchison Holdings could serve as “ready observation posts” for China to monitor U.S. military and commercial activities passing through the canal.

In the event of military conflict between the U.S. and China, such as a dispute over Taiwan, there are fears that the Chinese military could block the passage of civilian and military ships through the canal. This disruption could threaten the U.S. economy and compromise national security.