Geopolitics › Global issues & flashpoints › Maritime chokepoints
Panama Canal
Opened 1914; ports seized from CK Hutchison Feb 2026· Resource or chokepoint
FactTreaties, membership, measured data, events.
The 82 km canal across Panama linking the Atlantic and Pacific, run by Panama since 1999 and pulled into US–China rivalry since 2025.
See it on the Geopolitics map →The picture
The US built it, opening it in 1914, and handed it over on December 31, 1999 under the 1977 Torrijos–Carter treaties, which guarantee its neutrality. It carries about 5% of world seaborne trade; most cargo goes to or from US ports. A 2023–24 drought cut transits. Trump claimed China controlled it; Panama denied this but left China's Belt and Road. In early 2026 Panama's Supreme Court voided a CK Hutchison unit's port concession, and the state took over its two ports in February.
Why it matters
It is one of the most important waterways for US trade, and the fight over its ports shows how ownership of infrastructure has become a security issue.
Key facts and numbers
Panama Canal Authority transit data, the 1977 treaty texts, Panama's audit and court ruling on the port concession, and US and Chinese official statements.
What to watch
Who runs the two ports long term, whether CK Hutchison wins compensation, and how China responds; Hutchison's planned 2025 sale of its ports to a BlackRock–MSC group stalled.
Connections (2)
▸Panama Canal became a flashpoint in US–China strategic rivalryFact
The relationship
Washington feared Chinese influence over a waterway handling much of US seaborne trade. Hong Kong's CK Hutchison ran ports at both ends, and Chinese firms won projects after Panama switched recognition from Taiwan to Beijing in 2017. Under US pressure Panama left the Belt and Road in 2025 and took over the ports in 2026; China objected throughout.
Since when and why
Panama City and the Balboa and Cristóbal ports, from Trump's December 2024 claims through Panama's Belt and Road exit in February 2025 and the port takeover in February 2026.
How we know
Panamanian government statements, audit and court records on the port concession, Chinese foreign ministry remarks and US State Department readouts.
What to watch
Disputed: Panama says China never controlled the canal; US officials say Chinese-linked port operators could aid Beijing in a crisis. How China retaliates remains open.
▸America First foreign policy (Trump second term) pressured Panama over Panama CanalFact
The relationship
In his January 2025 inaugural address Trump said the US would take the canal back, alleging Chinese control and unfair fees; earlier that month he had refused to rule out force. Panama rejected the claims but made concessions: leaving the Belt and Road, and an April 2025 deal allowing rotating US troop deployments and priority passage for US warships.
Since when and why
Washington and Panama City; Secretary of State Rubio's February 2025 visit and Defense Secretary Hegseth's April 2025 visit, dealing with President José Raúl Mulino.
How we know
Trump's inaugural address and posts, State and Defense Department readouts, and Panama's joint declarations and public rebuttals.
What to watch
Disputed: whether US warships pass free, as Washington says, or pay through a compensation scheme, as Panama says; and whether the pressure lasts beyond Trump.