US to take back Panama Canal from Chinese influence: Hegseth

Visiting US defense chief says Beijing will not be allowed to 'weaponise' canal

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PANAMA CITY - The United States will take back the Panama Canal from Chinese influence, US Defence Secretary Pete Hegseth said on April 8 during a visit to the Central American nation.

Mr Hegseth, following talks with Panama's government, vowed to deepen security cooperation with Panama's forces and said China would not be allowed to "weaponise" the canal by using Chinese firms' commercial relationships for espionage.

"Together, we will take back the Panama Canal from China's influence," Mr Hegseth said, speaking at a pier renovated with US assistance in Panama City.

"China did not build this canal. China does not operate this canal and China will not weaponise this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations."

More than 40 per cent of US container traffic, valued at roughly US$270 billion (S$364 billion) a year, goes through the Panama Canal, accounting for more than two-thirds of vessels passing each day through the world's second-busiest interoceanic waterway.

The Chinese Embassy in Panama issued a statement rebutting Mr Hegseth's claim that Beijing interferes in the operations of the canal.