China influence on Panama Canal is national security risk: Sen. Cruz

China’s influence on the Panama Canal has long been a topic of concern for U.S. national security officials, with Sen. Ted Cruz issuing a stark warning on Tuesday about the potential risks posed by the Chinese Communist Party’s involvement in the vital shipping passage. During a Senate Committee on Commerce, Science & Transportation hearing, Cruz emphasized the dangers of China’s militaristic interest in the canal, pointing to the construction of a bridge by Chinese companies that could potentially be used to block passage through the canal.

Cruz highlighted the fact that Chinese companies control container ports at both ends of the canal, giving them the ability to observe and potentially disrupt shipping traffic. He also raised concerns about the high fees for canal transit, which disproportionately affect American cargo and navy vessels. The senator pointed out that U.S. taxpayers and consumers end up bearing the costs of canal transit, which can exceed $3 billion in profits.

President Donald Trump has also expressed concerns about China’s involvement in the Panama Canal, stating during his inauguration speech that “China is operating the Panama Canal” and that the U.S. is “taking it back.” This sentiment has been echoed by Secretary of State Marco Rubio, who is set to travel to Panama for his first international trip in his new role.

While Panama has denied any interference from foreign nations in the operation of the canal, Federal Maritime Commission Chairman Louis Sola testified that Chinese companies have significantly increased their presence in the region since 2015. He highlighted the Belt and Road Initiative and the ending of diplomatic relations with Taiwan as key factors contributing to China’s influence in Panama.

Sola also raised concerns about the involvement of state-owned Chinese companies in development projects near the canal, some of which have been awarded without a competitive bidding process. He emphasized the need to address China’s growing presence in the Americas and specifically in Panama.

Cruz further underscored Panama’s role in flagging vessels in the Iranian ghost fleet, which has provided Iran with billions of dollars in oil profits to fund terrorist activities. He called on the U.S. to be vigilant in monitoring Panama’s actions and to prevent any exploitation of the canal by foreign actors.

In conclusion, the issue of China’s influence on the Panama Canal remains a contentious topic, with U.S. officials expressing concerns about the potential risks to national security. It is imperative for the U.S. to closely monitor developments in Panama and to take proactive measures to safeguard the strategic importance of the canal.