- Experts urge Washington to consider repurchasing key ports and incentivizing allies to reduce reliance on China.
Increased calls for action in Washington are focused on diminishing Chinese influence, particularly concerning the control exerted by Chinese and Hong Kong entities over vital infrastructure, such as the Panama Canal and other significant ports in the Western Hemisphere.
During a recent session of the US House of Representatives Homeland Security Subcommittee on Transportation and Maritime Security, Chairman Carlos Jimenez highlighted the strategic advantages China holds over one of the world’s most critical waterways—the Panama Canal.
He expressed concerns that this control enables the Chinese Communist Party to influence commercial shipping, gather intelligence on US and allied vessel movements, and potentially limit Navy mobility during crises.
Experts at the hearing noted that nearly 50% of top container ports outside China are either partially or wholly owned by Chinese interests.
Recently, Panama initiated a government audit of ports managed by Hong Kong billionaire Li Ka-shing’s CK Hutchison conglomerate, while US Secretary of State Marco Rubio has warned Panamanian leader José Raúl Mulino of possible repercussions from the US if immediate actions aren’t taken to lessen Chinese control over the canal.
“While Panama has stepped up with an audit of Hutchison-operated ports, this is inadequate,” Jimenez stated. “More than an audit is required; we need decisive action.”
“The United States cannot endorse a scenario in which a foreign adversary actively seeks to undermine our global standing while controlling infrastructure crucial to our homeland security, military readiness, and economic stability,” he added.
Jimenez also suggested that US allies should actively work to distance themselves from Chinese interests, particularly those associated with state-owned enterprises.
Though Mulino asserts that the Panama Canal treaty’s neutrality clauses remain intact, two Panamanian lawyers have filed a lawsuit in the supreme court arguing that the agreement permitting Hutchison to operate terminals in Balboa on the Pacific and Cristobal on the Atlantic sides of the Panama Canal is unconstitutional.
Concerns Over Dual-Use Military and Civilian Operations
Experts addressed the Homeland Security Committee on February 11, expressing worries about the implications of dual-use military and civilian operations at ports with Chinese corporate involvement, extending beyond Panama.
Chinese firms have established varying degrees of ownership in port facilities across seven Western Hemisphere nations: The Bahamas, Brazil, Jamaica, Mexico, Panama, Peru, and the United States.
