Focus on the BIG picture.
Friday, Jul 03, 2026
Outside the box.
Marco Rubio Urges Panama to Limit Chinese Influence Amid Canal Dispute
US warns Panama of potential action over Chinese presence near the Panama Canal, as protests erupt in Panama City.
Panama City — US Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino to address US concerns over China’s influence near the Panama Canal.
The talks, held amid protests in the Panamanian capital, come as President Donald Trump pushes for tighter US control of the vital shipping route.
Rubio conveyed Trump’s position that China’s growing influence poses a threat to the canal’s operations and warned of potential US action if changes were not implemented.
The canal, operated by the Panama Canal Authority under Panamanian sovereignty, has been at the center of tensions following Trump’s remarks about “taking back” control of the waterway.
During the meeting, Mulino emphasized that Panama’s sovereignty over the canal was non-negotiable but suggested expanding a migration agreement with the US. Under the proposal, Panama would facilitate deportation flights for non-Panamanian migrants traveling through the Darién Gap, provided the US covers the costs.
Mulino also stated that Panama would not renew its Belt and Road Initiative agreement with China and invited the US to increase investments in the country.
Protests erupted as around 200 demonstrators marched through Panama City, chanting against Rubio and Trump.
Riot police intervened to block protesters from reaching the presidential palace.
Union leader Saul Mendez criticized the US visit, affirming Panama’s independence.
China, which does not operate the canal but has port operations in Panama, reiterated its respect for Panamanian sovereignty.
The US raised concerns that China could potentially disrupt canal operations during a conflict.
Rubio, a vocal critic of China, referenced these security concerns during his visit.
Panama has already ordered an audit of its ports near the canal following US pressure.
Meanwhile, water shortages caused by drought have limited canal transits, raising operational challenges.
Auctions for transit slots have reached as high as four million dollars.
Trump described Panama’s offer to audit its ports as insufficient, suggesting the US might seek stronger measures to secure its interests.
However, Panama has firmly rejected any discussions regarding US control over the canal, highlighting its strategic and financial significance to the nation’s economy.
The talks, held amid protests in the Panamanian capital, come as President Donald Trump pushes for tighter US control of the vital shipping route.
Rubio conveyed Trump’s position that China’s growing influence poses a threat to the canal’s operations and warned of potential US action if changes were not implemented.
The canal, operated by the Panama Canal Authority under Panamanian sovereignty, has been at the center of tensions following Trump’s remarks about “taking back” control of the waterway.
During the meeting, Mulino emphasized that Panama’s sovereignty over the canal was non-negotiable but suggested expanding a migration agreement with the US. Under the proposal, Panama would facilitate deportation flights for non-Panamanian migrants traveling through the Darién Gap, provided the US covers the costs.
Mulino also stated that Panama would not renew its Belt and Road Initiative agreement with China and invited the US to increase investments in the country.
Protests erupted as around 200 demonstrators marched through Panama City, chanting against Rubio and Trump.
Riot police intervened to block protesters from reaching the presidential palace.
Union leader Saul Mendez criticized the US visit, affirming Panama’s independence.
China, which does not operate the canal but has port operations in Panama, reiterated its respect for Panamanian sovereignty.
The US raised concerns that China could potentially disrupt canal operations during a conflict.
Rubio, a vocal critic of China, referenced these security concerns during his visit.
Panama has already ordered an audit of its ports near the canal following US pressure.
Meanwhile, water shortages caused by drought have limited canal transits, raising operational challenges.
Auctions for transit slots have reached as high as four million dollars.
Trump described Panama’s offer to audit its ports as insufficient, suggesting the US might seek stronger measures to secure its interests.
However, Panama has firmly rejected any discussions regarding US control over the canal, highlighting its strategic and financial significance to the nation’s economy.
