US senators examine China’s influence over Panama Canal

US senators heard sharply different analyses about Chinese influence over the Panama Canal on Wednesday, with some experts suggesting solutions ranging from enhanced trade partnerships to military intervention to regain control of the strategic waterway.

The hearing before the Senate Commerce, Science and Transportation Committee attempted to examine President Donald Trump’s claims that China has gained undue control over the canal, which the US transferred to Panama in 1999 under terms of a 1977 treaty.

Trump has contended that Panama’s authorisation of increased Chinese commercial activity violates the canal’s neutrality agreement.

“We gave it [the canal] to Panama, not China, and we’re taking it back,” Trump declared in his inauguration address, alleging treaty breaches to support a potential intervention.

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Trump wants the Panama Canal: empty talk or real threat for Hong Kong?

Trump wants the Panama Canal: empty talk or real threat for Hong Kong?

But China’s direct involvement remains a matter of debate. In 2018, a Chinese state-owned enterprise – China Harbour Engineering Company – secured a US$1.4 billion contract to construct the canal’s fourth bridge.