China has fired back at President Donald Trump, dismissing his claim that Beijing has seized control of the Panama Canal as baseless and provocative.
Newsweek reached out by email to a Trump representative and to Hutchison Ports, a Hong Kong–based port operator that controls ports near the canal, for comment.
Why It Matters
During his inaugural address on Monday, Trump lamented that the U.S. had transferred control of the canal back to Panama, saying American ships are being “severely overcharged.” He also repeated his claim that China is controlling the 50-mile waterway and pledged to take it back.
An estimated 2.5 percent of annual global maritime trade passes through the canal, which the U.S. completed in 1914 and turned over to the South American nation in 1999.
What To Know
Panamanian President José Raúl Mulino earlier this month defended the transit fees and stressed that the canal is “nonnegotiable.”
In a letter addressed to United Nations Secretary-General António Guterres and shared with reporters, the Panama City government complained about Trump’s “worrying” threat to take control of the canal, a violation of the United Nations Charter.
Arnulfo Franco/AFP via Getty Images
Asked to comment Wednesday on the issue during the Chinese Foreign Ministry’s regular press conference, spokesperson Mao Ning said Beijing agreed with Mulimo. “The canal is not directly or indirectly controlled by any major power,” she stressed.
While the Trump administration has not provided evidence of Chinese involvement in the operations of the canal itself, the ports situated at either end—Cristobal and Balboa—are run by Panama Ports Co., which is part of Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings.
What People Are Saying
Donald Trump said Monday in his inaugural address: “The purpose of our deal and the spirit of our treaty has been totally violated. American ships are being severely overcharged and not treated fairly in any way, shape, or form. And that includes the United States Navy. And above all, China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back.”
Panama President Mulino said Wednesday at the World Economic Forum in Davos, Switzerland: “We reject in its entirety everything that Mr. Trump has said. First, because it is false. And second, because the Panama Canal belongs to Panama and will continue to belong to Panama. The Panama Canal was not a concession or a gift from the United States.”
The Chinese Foreign Ministry’s Mao Ning said Wednesday: “China has not participated in the management and operation of the canal, has never interfered in the canal’s affairs, has always respected Panama’s sovereignty over the canal, and recognizes the canal as a permanently neutral international waterway.”
What’s Next?
Panama’s comptroller’s office has launched an audit of Panama Ports Co. “aimed at ensuring the efficient and transparent use of public resources,” Agence France-Press reported. The China-linked company said in a statement it would “continue to maintain a transparent and collaborative relationship” with the local authorities.
Trump has previously not ruled out military action in his efforts to secure control of the Panama Canal or Greenland, which he has repeatedly expressed interest in acquiring from Denmark because of national security concerns.
Copenhagen maintains that the island is not for sale and that any decision about independence rests with the Greenlanders themselves.
