US President Donald Trump’s threat to seize the Panama Canal over alleged undue Chinese influence may actually be aimed at limiting Beijing’s growing diplomatic and economic presence in Latin America, experts say.
The Panama Canal, which handles 5% of global maritime trade and 40% of US container traffic, seems unlikely to be seized by force, they agree.
China does not control the canal; rather, the Panama government is responsible for its management. The canal was handed over to Panama in 1999 after the US signed treaties in 1977, and since then, it has been managed by Panama’s government.
Panama granted Hutchinson Ports, a Chinese company, concessions to operate the ports at both ends of the canal, but China has never interfered in the management or operation of the canal.
