Tensions between the United States and China escalated this week after Defense Secretary Pete Hegseth accused Beijing of being a threat to the Panama Canal, prompting a swift retort from Chinese officials, who labeled the remarks as "blackmail" and interference, The Hill reported.
Hegseth recently claimed that China poses a threat to the Panama Canal and vowed that the U.S. and Panama "will take back" the strategic waterway from Chinese influence.
Hegseth made the statement Tuesday during a ribbon-cutting ceremony for a new U.S.-funded dock on the canal, where he criticized China's expanding presence in Panama and its control over key infrastructure near the canal's entry points.
"The U.S. will not allow communist China or any other country to threaten the canal's operation or integrity," Hegseth said. He warned that Chinese companies "continue to control critical infrastructure" in the area, giving Beijing the "potential to conduct surveillance activities" throughout Panama.
The comments followed warnings from President Donald Trump, who said China effectively controls the vital trade route by controlling two major ports at both ends of the canal. Those ports are currently operated by CK Hutchison, a Hong Kong-based firm in the process of selling its controlling stake to U.S. investment firm BlackRock Inc.
"This makes Panama and the United States less secure, less prosperous, and less sovereign," Hegseth said. "And as President Donald Trump has pointed out, that situation is not acceptable."
China's response was immediate and pointed. On Wednesday, Foreign Ministry spokesperson Lin Jian said Hegseth had "maliciously attacked China" and was attempting to "sabotage China-Panama cooperation."
"Everyone knows who wants to control the Panama Canal," Lin said during a press briefing. "The U.S. side should take a look in the mirror to see who really threatens the sovereignty, security, and development of other countries."
Lin further accused the U.S. of "spreading rumors and sowing discord" and urged Washington to "stop deliberately linking China to the canal issue to find excuses for the U.S.'s desire to control the Canal."
Separately, the Chinese Embassy in Panama issued its condemnation a day earlier, accusing the U.S. of "blackmail" and asserting that Washington has no right to dictate business relations for Panama.
When asked about the accusations, Hegseth dismissed the notion of blackmail. "I don't know anything about blackmail … but I do know about strength, peace through strength and deterrence," he said Wednesday.
Hegseth also emphasized the growing defense relationship between the U.S. and Panama, declaring that the U.S. was "standing up to malign Chinese influence" in the region.
The dispute highlights intensifying geopolitical friction over the Panama Canal, a critical conduit for global trade and a strategic asset long considered vital to U.S. national security.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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