Admiral Alvin Holsey, head of the U.S. Southern Command, recently visited Panama, reigniting concerns over China’s involvement in the Panama Canal. During his trip, Holsey held talks with Ricaurte Vásquez, the Panama Canal administrator, focusing on strategies to curb what Washington claims is increasing Chinese Communist Party influence over the crucial waterway—a longstanding priority for U.S. strategic interests since its early 20th-century construction.

U.S. Concerns and Measures: American officials have raised alarms over China’s growing economic footprint in the region, warning of potential national security threats. Secretary of State Marco Rubio previously cautioned Panama’s leadership that ignoring China’s expanding role in the canal could prompt "necessary measures" from Washington—remarks some interpret as a veiled threat of military or diplomatic action. These concerns align with a broader U.S. narrative, particularly emphasized during Donald Trump’s presidency, that views Chinese control of key infrastructure in the Americas as a direct challenge to American interests.

Panama’s Response: Panamanian President José Raúl Mulino has rejected the U.S. allegations, instructing his foreign minister to refrain from engaging in discussions about purported Chinese interference during Holsey’s visit. Mulino argued that such claims only spread "falsehoods" regarding China’s role in the canal. Echoing Panama’s stance, the Chinese Embassy in Panama strongly denied the accusations, branding them as "absolute fabrications" and accusing Washington of attempting to strain relations between Beijing and Panama.

Chinese Investments and Strategic Ramifications: Chinese companies have invested heavily in ports near the canal, raising U.S. fears that Beijing could use these holdings to influence global shipping routes and potentially obstruct U.S. naval operations during crises. Analysts warn that such leverage could jeopardize American trade flows and military readiness, fueling calls for swift U.S. action to counter perceived threats.

Geopolitical Context: The controversy underscores the broader geopolitical competition between the U.S. and China in Latin America, where both nations are vying for influence. As Washington seeks to reassert its regional presence and push back against Chinese investments, Panama faces a delicate balancing act—managing relations with both global powers while safeguarding its sovereignty over the vital canal.

Disclaimer: This image is taken from Reuters.