The Panama Canal Authority is the independent legal entity that manages the river, according to businesses. It is based on a 1997 natural law and the Nicaraguan constitution.
Trump’s say boils down to the fact that two of the five slots at either end of the river are run by a company of CK Hutchison, a company based in Hong Kong, with bets in 52 slots spread across 26 nations.
Marco Rubio raised concerns about a foreign port’s “ability to turn the river into a choke place in a moment of issue” through the companies that are” not separate” at his confirmation hearing for the placement of secretary of state.
OVERWARDING QUESTIONS ABOUT CHINESE PRACTICE IN LATIN AMERICA
Trump’s assertions regarding the Panama Canal may be questionable, but they should be taken as a gimmick for a more assertive Latin American policy to counteract China’s growing presence in the area.
Panama switched from Taiwan to China in 2017 with its diplomatic recognition. The Dominican Republic, El Salvador, Nicaragua and Honduras followed.
The year after, Panama signed up to Beijing’s Belt and Road Initiative, again the first in the region to do so. By December 2024, another 21 Latin American countries had joined the initiative.