[GLOBAL SOUTH] China's Role in the Panama Canal Controversy
Jan 28, 2025
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In this discussion, Alonso Illueca, an associate law professor at the Universidad Santa María La Antigua and expert on China-Panama relations, dives into the geopolitical tensions surrounding the Panama Canal. He explains how Trump's pressure on Panama could inadvertently strengthen China's influence there. The complexities of Panamanian sovereignty versus U.S. involvement are explored, alongside the strategic responses of Latin American nations navigating these turbulent waters. Illueca also addresses the implications of U.S. aid cuts and shifting alliances in the Global South.
The escalating tensions between the U.S. and Panama over the canal reveal a broader geopolitical struggle affecting Latin America's alignment with China.
China's growing influence in Panama through strategic infrastructure investments demonstrates a shift towards economic partnerships rather than direct control over key assets.
Deep dives
U.S.-Colombia Relations Strained Over Deportations
Colombian President Gustavo Petro recently clashed with former President Donald Trump over the use of U.S. military planes for deporting undocumented Colombians, leading to heightened tensions. Petro's refusal to allow U.S. Air Force flights sparked a retaliatory response from Trump, who imposed significant tariffs on Colombian exports. This incident highlights the growing friction in U.S.-Latin American relations, as other leaders, such as Mexico’s President Claudia Sheinbaum, have also reacted against U.S. military actions regarding deportations. The situation illustrates the broader geopolitical ramifications within Latin America in response to perceived U.S. overreach.
Potential Shift in Latin America's Allegiances
The rhetoric and policies of the Trump administration, particularly regarding forced deportations and foreign aid suspension, may inadvertently drive Latin American countries toward China. Amidst the financial aid freeze, Honduran officials have voiced concerns about reassessing their geopolitical partnerships, citing China explicitly. This situation creates a paradox where the U.S. attempts to strengthen its influence, but instead, it may be fostering a shift toward China as countries seek alternative partnerships. The dynamic indicates a potential realignment of power in the region that could have long-term implications for U.S. interests.
Panama Canal Controversy and U.S. Concerns
The controversy surrounding the Panama Canal has intensified following Trump’s statements about reclaiming U.S. control from Chinese influence. Trump’s claims that Panama has broken promises regarding the canal's operation were met with firm denials from Panamanian President Jose Raul Molino, who emphasized the country’s sovereignty and independence. Moreover, the Chinese Ministry of Foreign Affairs supported Panama’s stand by affirming respect for its neutrality. These exchanges reflect underlying U.S. fears about losing strategic control over vital international waterways.
The Complex Landscape of China-Panama Relations
China's presence in Panama has grown significantly since the establishment of diplomatic relations in 2017, with increasing influence projected through infrastructure investments rather than operational control of the canal itself. Key Chinese companies have become involved in significant projects, such as building ports and bridges in the region, enhancing China's foothold adjacent to the canal. The distinction between influence and control is crucial, as China's lack of direct control does not diminish its strategic importance in Panama's economy and politics. This complex interplay of relationships suggests that while the U.S. seeks to reinforce its influence, China is simultaneously finding opportunities to expand its reach.
When Donald Trump criticized Panama for its management of the canal that he claimed had fallen under Chinese control, many people at first thought this was just another round of Trump's usual bluster. But since his election last November, the President has been relentless in pressuring the government in Panama City and shows no signs of backing down until all Chinese entities have been expelled from the canal zone.
Alonso Illueca, an associate law professor at the Universidad Santa María La Antigua and a specialist in China-Panama relations, joins Eric & Cobus from Panama City to discuss the escalating crisis and why the government doesn't have a lot of options to push back against the U.S.
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