U.S.-China Tensions Erupt at UN over Panama Canal, Threatening Global Trade and Security

In a tense exchange at the United Nations Security Council, tensions between the United States and China escalated over the Panama Canal on Monday, with the U.S. expressing concerns about Beijing’s growing influence in the key waterway that could potentially disrupt global trade and security.

The discussion took place during a meeting chaired by Panamanian President José Raúl Mulino, who underscored the canal’s neutrality and his country’s sovereignty over the strategic waterway connecting the Atlantic and Pacific oceans. Panama currently holds the council presidency.

Interpol Secretary General Valdecy Urquiza warned council members of the growing threats to maritime security, including piracy, armed robbery, transnational crime, and cyber criminals exploiting weak cybersecurity in ports.

U.S. President Donald Trump’s administration has previously voiced concerns about Panama’s relations with China, with Trump himself suggesting that his country should reconsider control of the canal before his election last November. The U.S., which built the canal in the early 1900s to facilitate commerce and military transit between its coasts, relinquished control in 1999 under a treaty signed by President Jimmy Carter.

China’s Ambassador Fu Cong defended Panama’s management of the canal, stating that it has made significant contributions to global shipping and trade while respecting the canal’s permanent neutrality and supporting Panama’s sovereignty over it.

Acting U.S. Ambassador Dorothy Shea voiced concerns about China’s increasing influence in the area surrounding the canal, particularly over critical infrastructure and port operations. She also accused China of making unlawful maritime claims and aggressive actions that pose a threat to maritime security and commerce, specifically referencing China’s claims in the South China Sea.

The U.S. has pressed China to sell its interests in ports at either end of the canal to an American consortium that includes BlackRock Inc., but Panama has vehemently rejected any takeover of the canal. In April, U.S. Defense Secretary Pete Hegseth visited Panama and agreed with President Mulino to strengthen security cooperation, as well as granting U.S. troops access to strategic air and naval facilities in Panama, sparking protests in the capital.

In response to Shea’s accusations, China’s Fu stated that the U.S.’s allegations were merely a pretext for attempting to gain control of the canal. The Chinese envoy also criticized the U.S. and its deployment of offensive weapons in the South China Sea region as a major disruptor of peace and stability, while accusing the administration of exacerbating risks to global maritime security.

President Mulino reiterated Panama’s sovereignty over the canal and emphasized the multilateral treaty governing its administration, stressing that the canal’s neutrality is the best defense against any specific or global threats.