Trump vows to reclaim Panama canal amid China concerns

- "Panama violated our trust, violated the spirit of our cooperation, because American ships are subject to huge fees. This should not be the case. Chinese ships are using the Panama Canal, but we did not give the Panama Canal to China. We will reclaim the Panama Canal," announced U.S. President Donald Trump.

At the end of last year, Politico highlighted that although China has increased its presence in Latin America, a company based in Hong Kong manages two ports at the entrance to and exit from the canal — no commercial or governmental entity of the People's Republic of China plays a direct role in managing ship traffic on this critical waterway. The canal is administered by an independent government agency of Panama, and Beijing has not made any recent moves to indicate a desire to purchase the canal or increase its presence in the country.

In 1903, the United States signed a treaty with Panama that allowed it to construct the canal, linking the Pacific and Atlantic Oceans. Panama earns revenue generated by this waterway. Meanwhile, Washington guaranteed the canal's neutrality and control over the territory on both its sides.

The region known as the Panama Canal Zone was managed by the United States, and American law applied to the residents of the region. After decades of tensions surrounding the passage, President Jimmy Carter's administration signed two treaties in 1977 with Panama's military dictator, Omar Torrijos, to transfer control of this key shipping route by the end of 1999. The U.S. retains the right to defend the canal against any threat to its neutrality. As Politico emphasizes, analysts do not believe that the treaty provisions would allow Washington to legally regain control of the canal.

The 50-mile Panama Canal is crucial for international maritime transport.