In brief
President-elect Donald Trump erroneously stated that Chinese soldiers operate the Panama Canal, a claim refuted by Panama's President. Despite the inaccuracy, growing Chinese investments in global shipping raise significant security concerns in the U.S.
While many were caught off guard by a Christmas message from President-elect Donald Trump claiming that "wonderful soldiers of China" were "lovingly, but illegally, operating the Panama Canal," his assertion is factually incorrect. The Panama Canal is managed by a Panamanian government agency, not by Chinese military personnel. In response to Trump's comments, President José Raúl Mulino of Panama stated unequivocally that "there are no Chinese in the canal" except those on passing ships or in tourist areas.Despite this falsehood, U.S. officials remain increasingly worried about the substantial influence of Chinese companies and the Chinese government in global shipping and port operations, including at key locations like the Panama Canal. These investments position China, the world’s largest exporter, in critical roles in the transportation of goods, allowing considerable oversight on global trade and activities of other nations.Brian Hughes, representing the Trump-Vance transition team, firmly asserted that any Chinese control over the Panama Canal constitutes a potential national security risk for the U.S. This concern reflects a broader trend of Chinese dominance in global shipping, raising red flags among Washington officials as they assess the implications for American interests abroad.

