Rubio urges Panama to curb China’s influence over Panama Canal
U.S. Secretary of State Marco Rubio has called on Panama to make “immediate changes” to limit China’s growing presence and influence over the Panama Canal, warning that the U.S. will take necessary steps to protect its interests under existing treaties. The demand comes after President Donald Trump’s controversial pledge to “retake the canal,” a statement that has sparked protests and heightened tensions in the region.
Rubio met with Panamanian President Jose Raul Mulino in Panama City on Sunday for a two-hour discussion. While the U.S. diplomat reinforced concerns over Chinese investments in ports near the canal, Mulino appeared to downplay the prospect of U.S. military intervention. The Panamanian leader instead proposed technical-level discussions with Washington to address Trump’s concerns. However, protests erupted in Panama City on Friday, where demonstrators burned effigies of Trump and Rubio, reflecting widespread discontent over U.S. interference.
Mulino has made it clear that discussions about the ownership of the Panama Canal are off the table. The canal, fully controlled by Panama since 1999, operates under a neutrality treaty signed between the U.S. and Panama in 1979.
Trump’s remarks, including unverified claims that Chinese troops are operating the canal, have further fueled concerns. The U.S. president also alleged that American ships were unfairly charged more than others, though such pricing discrimination would violate treaty agreements.
While the canal remains under Panamanian management, China has made significant investments in infrastructure around it. A Hong Kong-based company operates two of the five ports near the canal’s entrances, a fact that has drawn criticism from Washington. Rubio and Trump argue that China’s economic presence in the region could one day be used to obstruct U.S. military or merchant vessels, particularly in times of conflict.
Trump’s aggressive stance has reignited deep-seated memories among Panamanians of U.S. control over the canal and past military interventions. Many recall how, before 1999, Panamanians were restricted from freely accessing the canal zone, which was treated as U.S. territory. Some also fear echoes of the 1989 U.S. invasion of Panama, which led to the ousting of dictator Manuel Noriega but also left hundreds of civilians dead.
While the majority of Panamanians strongly oppose any U.S. attempts to reclaim the canal, some citizens criticize their own government for failing to distribute canal revenues fairly. Andre Howell, a hotel worker in Panama City, believes corruption has left ordinary Panamanians without economic benefits.
Rubio, the first Hispanic U.S. Secretary of State, is known for his hardline stance on China and Latin America. His visit to Panama signals Washington’s growing impatience with nations that embrace Chinese investment in what the U.S. considers its strategic sphere of influence.
With tensions rising, Panama finds itself at the center of a geopolitical tug-of-war between the U.S. and China. While Washington has been pushing for limits on Beijing’s economic influence, Panama remains firm on its sovereignty over the canal, setting the stage for further diplomatic friction in the coming months.