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US defense secretary says China is a threat to Panama Canal, spurring a fiery response from Beijing

PANAMA CITY: U.S. Defense Secretary Pete Hegseth said Tuesday the Panama Canal faces ongoing threats from China but that together the United States and Panama will keep it secure.

Hegseth’s remarks triggered a fiery response from the Chinese government, which said: “Who represents the real threat to the Canal? People will make their own judgement.”

Speaking at a ribbon cutting for a new U.S.-financed dock at the Vasco Nuñez de Balboa Naval Base after a meeting with Panama President José Raúl Mulino, Hegseth said the U.S. will not allow China or any other country to threaten the canal’s operation.

“To this end, the United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades,” he said.

Hegseth alluded to ports at either end of the canal that are controlled by a Hong Kong consortium, which is in the process of selling its controlling stake to another consortium including BlackRock Inc.

U.S. Defense Secretary Pete Hegseth, left, chats with Panama Canal Authority Administrator Ricaurte Vasquez, center, and Southcom Commander Navy Adm. Alvin Holsey during a tour of the Panama Canal’s Miraflores Locks in Panama City, Tuesday, April 8, 2025. (AP Photo/Matias Delacroix)

U.S. and Panamanian military patrol the Panama Canal during a joint drill held as U.S. Defense Secretary Pete Hegseth visits the Port of Rodman in West Panama, Tuesday, April 8, 2025. (AP Photo/Matias Delacroix)

“China-based companies continue to control critical infrastructure in the canal area,” Hegseth said. “That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable.”

On the way, Hegseth posted a photo on X of the two men laughing and said it was an honor speaking with Mulino. “You and your country’s hard work is making a difference. Increased security cooperation will make both our nations safer, stronger and more prosperous,” he wrote.

Late Tuesday, Mulino and Hegseth released a joint statement.

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