Trump had previously declared, just days before taking office, that the U.S. would resume direct control of the canal. During his speech, he emphasised: “American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the United States Navy. And above all, China is operating the Panama Canal and we didn’t give it to China. We gave it to Panama. And we’re taking it back.”
It is essential to clarify that China does not control the canal, which remains under the jurisdiction of the Autoridad del Canal de Panamá (ACP), the Panamanian government agency that assumed responsibility for the canal on 31 December 1999. This transfer was part of the Torrijos-Carter Treaties signed in 1977, which established Panama’s full control and responsibility for the canal’s operations, maintenance, and improvements. Since then, the ACP has overseen the canal, implementing significant upgrades, including a 2016 expansion that doubled its capacity.
Chinese companies are active in the region. Hutchison Ports, a subsidiary of Hong Kong-based CK Hutchison Holdings, manages the ports of Balboa on the Pacific side and Cristóbal on the Atlantic side. Additionally, in 2016, the Chinese firm Shandong Landbridge Group secured a concession to build and operate a new container terminal on Margarita Island, located on the canal's Atlantic side. However, due to delays and contractual disputes, the ACP revoked the concession in 2021. The project was later taken over in 2022 by a consortium led by Notarc Management Group, with the involvement of Terminal Investment Limited, an affiliate of MSC, which now manages the terminal.
Following Trump’s remarks, Panamanian President José Raúl Mulino reaffirmed his nation’s sovereignty over the canal. Foreign Minister Javier Martinez-Acha clarified that Panama’s control of the canal is non-negotiable, stating: “No financial offer has been received from the United States, and the canal belongs to the Panamanian people. It will remain that way.”
The president of the Autoridad del Canal de Panamá, Vasquez Morales, also refuted Trump’s claims regarding Chinese involvement, asserting that China has no role in the canal’s operations. Morales warned that granting preferential tolls to U.S. vessels would lead to chaos in canal management.
