Posted on Wednesday, January 29, 2025
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by Outside Contributor
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The Senate Commerce, Science, and Transportation Committee convened Tuesday to discuss the American-Chinese rivalry at the Panama Canal, one of President Donald Trump’s major talking points since his reelection in November.
Trump has repeatedly called for the United States to take back control of the canal—while not ruling out using military force to do so—and has warned of heavy Chinese activity in the region.
Sen. Ted Cruz opened the hearing by warning of increasing Chinese control of the canal—in his view, a violation of the United States’ 1977 agreement with Panama that returned control of the canal to the Central American nation at the end of 1999, as well as an economic and national security risk.
“Chinese companies are building a bridge across the canal—at a slow pace so as to take nearly a decade—and control container ports at either end. The partially completed bridge gives China the ability to block the canal without warning, and the ports give China ready observation posts to time that action. This situation poses acute risks to U.S. national security,” said Cruz.
“We cannot afford to let American shippers be extorted,” Cruz said. “We cannot turn a blind eye if Panama exploits an asset of vital commercial and military importance. And we cannot stay idle while China is on the march in our hemisphere.”
The committee invited four experts to speak, all of whom have expertise on the Panama Canal and the international economy.
Eugene Kontorovich, a law professor at George Mason University, told senators that Chinese companies’ activities in Panama—although presented as mere business dealings—are likely also strategic military maneuvers.
“Modern warfare has seen belligerent powers seek to evade international legal limitations by disguising their actions in civilian garb,” said Kontorovich. “Bad actors seek to exploit the fact that international treaties focus on sovereign actors. Many of China’s manmade islands in the South China Sea began as ostensibly civilian projects before being militarized.”
Kontorovich also contended that the treaty between then-President Jimmy Carter and Panama provided both sides the ability to use military force to defend their interests in the canal.
“It was clear that the treaty was understood as giving both sides separately the right to resort to use armed force to enforce the provisions of the treaty … Panama agreed that the United States could enforce this regime of neutrality by force,” he said.
Daniel Maffei, the chairman of the Federal Maritime Commission, also told the committee that foreign actors shutting off American access to the Panama Canal is possible, although he suggested he had no reason to believe Chinese spies were working to do so.
“It’s not hard to close off a waterway,” said Maffei. “The Panama Canal is actually quite vulnerable in terms of infrastructure. This is not a fort or a military enforced location.”
Although they did not condemn the Chinese activities as harshly as their Republican counterparts, Democratic senators seemed amenable to the idea of securing American interests in Panama.
“I am concerned about Chinese-owned ports in Panama and their proximity to the canal. I’m also deeply concerned about the installation of Chinese equipment from Huawei and Chinese companies near the canal,” said Sen. Maria Cantwell, D-Wash.
After leaving the hearing, Sen. Tim Sheehy, R-Mont., told The Daily Signal that securing international waterways was essential to protecting the American economy.
“Whether it’s Gibraltar, whether it’s the straits of Malacca, or the Panama Canal, the entire world economy runs on the freedom of navigation of those oceans,” Sheehy said.
Sen. Marsha Blackburn, R-Tenn., also told The Daily Signal in a written statement that she considers protecting waterways from Chinese interference a top national security priority.
“Chinese Communist Party’s influence on the operations of Chinese companies at the Panama Canal is a huge national security concern,” she said. “The United States should consider conditioning the billions of dollars we invest in Panama on keeping Communist China out of essential canal operations.”
George Caldwell is a journalism fellow at The Daily Signal. Send an email to George.
Reprinted with Permission from The Daily Signal – By George Caldwell
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
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