Washington: The head of the Federal Maritime Commission (FMC) is set to address concerns over the growing influence of Chinese companies in Panama during a U.S. Senate Commerce Committee hearing.
Chair Louis E. Sola will present written testimony on Tuesday, emphasizing the need for the United States to counter China's expanding presence and strengthen support for American businesses in the region.
In his testimony, Sola warns that Chinese firms have secured billions of dollars in development contracts in Panama, many involving infrastructure projects near or on the Panama Canal. "Chinese companies must not be the sole bidders on contracts," Sola states, adding that the U.S. has various options to address China's increasing foothold in Panama and the Americas.
Senate Commerce Committee Chair Ted Cruz has expressed strong concerns about Panama's actions, stating, "The United States paid for and built the Panama Canal, but Panama is treating America unfairly and ceding control of key infrastructure to China." President Donald Trump has previously vowed to "take back the Panama Canal," though he has not provided details on how or when this would happen. Critics have raised alarm over his refusal to rule out the use of military force, drawing opposition from both allies and adversaries in Latin America.
Panama's President Jose Raul Mulino defended his country’s stewardship of the canal, asserting that it has been responsibly managed for global trade, including significant U.S. interests. Mulino reaffirmed, "The canal is and will continue to be Panamanian."
The Panama Canal remains vital to U.S. commerce, with over 40% of U.S. container traffic, valued at approximately $270 billion annually, passing through its waters. Last year, severe drought conditions affected canal operations, prompting a visit from Sola and former FMC Chair Dan Maffei to assess the situation. Maffei noted in his testimony that Panama's recent rainy season has alleviated immediate water supply concerns, restoring normal transit volumes.
Sola also underscored the importance of preserving the independence of the Panama Canal Authority, urging vigilance to ensure it remains free from undue foreign influence.
