Panama City — China strongly pushed back on Tuesday against allegations made by U.S. Defense Secretary Pete Hegseth, who claimed that Beijing has been interfering in the operations of the Panama Canal. The Chinese government dismissed the accusations as unfounded and politically motivated.
Secretary Hegseth made the comments during his high-profile visit to Panama, a strategic nation in Central America that hosts one of the world’s most important shipping routes. His visit comes at a time of heightened geopolitical tension, particularly surrounding global trade routes and influence in Latin America.
While addressing reporters and Panamanian officials, Hegseth warned about what he described as “growing Chinese interference” in key infrastructure projects across the region, singling out the Panama Canal as a point of concern. He alleged that Beijing is using its commercial and diplomatic reach to exert undue influence over the canal’s operations — an accusation that has surfaced in Washington’s rhetoric in recent years amid increasing U.S.-China rivalry.
In response, the Chinese Embassy in Panama issued a firm statement rejecting the allegations. It characterized Hegseth’s comments as “baseless smears” and accused the United States of hypocrisy and imperial behavior in the region.
“The so-called Chinese interference is a fabrication intended to smear China and drive a wedge between China and Panama,” the embassy said. “We urge the United States to stop its acts of blackmail and plundering in Panama and respect the sovereignty and choices of the Panamanian people.”
The Chinese statement emphasized that Beijing has always respected Panama’s autonomy and worked with the country on the basis of mutual benefit and non-interference. China has invested significantly in Panamanian infrastructure and trade since the two countries established diplomatic relations in 2017, replacing Panama’s former ties with Taiwan.
The Panama Canal, which connects the Atlantic and Pacific Oceans, is a vital chokepoint for global maritime commerce. Although Panama controls the canal independently, both China and the United States have strategic interests in its operations. U.S. officials have increasingly voiced concern over China’s growing economic footprint in Latin America, viewing it as part of a broader effort to expand its global influence.
Analysts note that while Chinese companies have been involved in projects near the canal, there is no public evidence that Beijing has interfered in its administration. The canal is run by the Panama Canal Authority, an autonomous government agency that reports to the Panamanian government.
The diplomatic spat underscores the intensifying competition between Washington and Beijing in Latin America, where countries like Panama are navigating complex relations with both powers.