During a Senate Committee on Commerce, Science & Transportation hearing, Senator Ted Cruz expressed worries about China's growing influence on the Panama Canal, citing potential risks to U.S. national security. Cruz highlighted concerns about Chinese companies' involvement in building a bridge across the canal and controlling container ports at both ends, giving China the ability to block the canal and observe activities. He emphasized the need to address these risks promptly.
Senator Cruz also pointed out the high transit fees for the canal, which disproportionately affect Americans due to the significant amount of U.S. cargo passing through. He mentioned that U.S. Navy vessels incur additional fees, contributing to the canal's profits exceeding $3 billion annually. Cruz raised the issue of American taxpayers and consumers bearing the financial burden through increased costs for goods.
These concerns come as Secretary of State Marco Rubio prepares for his first international trip to Panama. President Trump has previously expressed intentions to address China's involvement in the canal, emphasizing the need to protect U.S. interests in the region.
While Panama denies Chinese influence, Federal Maritime Commission Chairman Louis Sola testified about the increasing presence of Chinese companies in Panama since 2015. Sola highlighted Panama's participation in the Belt and Road Initiative and the awarding of development contracts to Chinese firms, some with alleged ties to the People's Liberation Army.
Senator Cruz also raised issues regarding Panama's handling of vessels in the Iranian ghost fleet, suggesting potential risks associated with Panama's actions. He urged vigilance in monitoring China's activities in the region and safeguarding vital assets from exploitation.
The hearing underscored the need for heightened awareness of China's expanding influence in the Americas and the potential implications for U.S. national security. As discussions continue, policymakers are expected to explore strategies to address these concerns and protect American interests in the vital global shipping passage.
