Panama Canal CEO denies Trump’s China control claims, warns of treaty chaos

Panama Canal Authority CEO Ricaurte Vásquez Morales firmly denied President-elect Donald Trump’s recent assertion that the critical waterway is under Chinese control.

“The accusations that China is running the Canal are unfounded,” Vásquez Morales told *The Wall Street Journal* on Wednesday. “China has no involvement whatsoever in our operations.”

Vásquez Morales emphasized the canal’s strict adherence to international laws, stating, “Rules are rules and there are no exceptions. We cannot discriminate for the Chinese, or the Americans, or anyone else. This will violate the neutrality treaty, international law, and it will lead to chaos.”

The Panama Canal’s neutrality is governed by the Torrijos-Carter Treaties, negotiated in the 1970s by then-President Jimmy Carter. These agreements allowed the U.S. to defend the canal against threats but transferred control of the canal to Panama on December 31, 1999.

During a press conference at his Mar-a-Lago resort, Trump was questioned about potential military or economic actions to gain control over the Panama Canal and Greenland. “No, I can’t assure you on either of those two,” Trump responded. He stressed the canal’s importance, saying, “The Panama Canal is vital to our country. It’s being operated by China. China. And we gave the Panama Canal to Panama. We didn’t give it to China. And they’ve abused it. It should have never been made.”

Trump criticized Carter’s decision, suggesting it contributed to Carter’s electoral defeat. “Giving the Panama Canal is why Jimmy Carter lost the election, in my opinion, more so maybe than the hostages,” Trump said. “But he was a good man… But that was a big mistake.”

Panamanian President José Raúl Mulino also dismissed Trump’s claims. “There is not a single Chinese soldier in the canal,” Mulino stated, reinforcing that “the canal is Panamanian and belongs to Panamanians.”

Concerns about Chinese influence reflect broader worries from U.S. defense officials. Gen. Laura J. Richardson of U.S. Southern Command warned Congress about China’s strategic investments in global ports, including those around the Panama Canal. “These investments include critical infrastructure such as deep-water ports, cyber facilities, and space facilities,” she said, highlighting potential threats from Chinese State-Owned Enterprises bidding on canal-related projects.

Despite Trump’s claims, Vásquez Morales and Panamanian authorities maintain that the canal operates independently, upholding its neutrality and rejecting any external control.