PANAMA CITY — US Secretary of Defense Pete Hegseth has raised serious concerns over China’s expanding footprint in the Western Hemisphere, warning that Beijing’s military presence is “too large” and poses both economic and strategic threats.
Speaking at a regional security conference in Panama on Wednesday, Hegseth cautioned that Chinese companies are not only investing in but also controlling land and key infrastructure across the region.
“Make no mistake,” he said. “Beijing is investing and operating in this region for military advantage and unfair economic gain.”
Call for Regional Unity
Hegseth urged Latin American governments to work together to counter China’s influence and also address issues like transnational drug cartels and illegal immigration. His comments came just a day after his meeting with Panama’s President José Raúl Mulino and a visit to the Panama Canal, a waterway now at the center of geopolitical tension.
The US and Panama agreed to increase security cooperation and explore solutions regarding fees that US warships are currently required to pay to transit through the canal.
Tensions Over the Panama Canal
Hegseth’s visit comes amid increased rhetoric from US President Donald Trump, who has claimed that America is being overcharged for canal access and accused China of having undue influence over canal operations — claims that Panama firmly denies.
Fueling these concerns is CK Hutchison, a Hong Kong-based conglomerate, which has held a 25-year lease on ports at both ends of the canal. Though the Panamanian government announced an audit that found “irregularities” in the lease, CK Hutchison denied any wrongdoing.
A Shift Towards US Control?
In a dramatic development, CK Hutchison said it would sell its controlling stake in the ports to a consortium led by US-based BlackRock Inc., which could effectively bring the strategic ports under American control once the deal finalizes.
China Pushes Back
China quickly responded through its embassy in Panama, condemning the US’s stance as “blackmail.”
“Who Panama carries out business with is a sovereign decision, and not something the US has the right to interfere in,” the statement said.
As the geopolitical tug-of-war intensifies, Latin America may soon find itself at the heart of a power struggle between two global superpowers, with the Panama Canal as the strategic prize.
