Trump Warns China Is Trying to Take Panama Canal, Links Threat to Communism

President Donald Trump said July 1 that China is “trying to take over the Panama Canal” and vowed the United States won’t “let that happen,” folding the warning into a broader speech that called communism the greatest threat to the country.Trump made the remarks at the opening of the Theodore Roosevelt Presidential Library in Medora, North Dakota, where he praised Roosevelt’s role in building the canal and criticized the United States’ decision to transfer it to Panama.“Now China is trying to take over the Panama Canal, and we’re not going to let that happen,” Trump said.The speech, which did not announce a new canal measure, came after months of U.S. statements on Chinese pressure on Panama-flagged vessels and Beijing’s role in port terminals at opposite ends of the canal.Panama owns and administers the canal. The U.S. statements concern two adjacent port terminals—Balboa and Cristóbal—vessel inspections in Chinese ports, and commercial access near the waterway.A review of Tokyo MOU/APCIS detention lists reviewed by The Epoch Times found that Panama-flagged vessels accounted for 92 detention entries at mainland Chinese ports in March, up from 20 in February. The number rose to 135 in April and 140 in May, before falling to 64 in June.Later in the speech, Trump called communism “the greatest threat” to the United States, saying it was potentially a bigger threat than World War I, World War II, Pearl Harbor, and Sept. 11 because it spreads “like a cancer.”Vessel Detentions Drew US ConcernFederal Maritime Commission (FMC) chairman Laura DiBella said in a March 26 statement that China had imposed “a surge in detentions of Panama-flagged vessels in Chinese ports under the guise of port state control,” far above historical norms.She said that these intensified inspections appeared intended to punish Panama after the transfer of Hutchison’s port assets.In January 2026, Panama’s Supreme Court invalidated the legal framework supporting Hong Kong-based CK Hutchison’s concession to operate the Balboa and Cristóbal terminals on the Pacific and Atlantic sides of the Panama Canal.DiBella also said China’s Ministry of Transport had summoned Maersk and MSC for high-level discussions, and that Chinese marine conglomerate COSCO later suspended services at Balboa and rerouted operations.The Tokyo MOU/APCIS lists reviewed by The Epoch Times recorded 48 detention entries at mainland Chinese ports in February, including 20 involving Panama-flagged vessels. In March, the number of mainland China detention entries rose to 124, including 92 involving Panama-flagged vessels.The pattern continued in April and May. The lists recorded 164 detention entries at mainland Chinese ports in April, including 135 involving Panama-flagged vessels. In May, there were 175 mainland China detention entries, including 140 involving Panama-flagged vessels.In June, the lists recorded 124 detention entries at mainland Chinese ports, including 64 involving Panama-flagged vessels.The figures represent detention entries, not necessarily unique vessels. The lists record ship flag, place of detention, detention date, release date, and listed deficiencies; they do not state why a vessel was selected for inspection or detention.Secretary of State Marco Rubio made a similar argument on April 2. He said China’s actions against Panama-flagged vessels raised serious concerns about the use of economic tools to undermine the rule of law in Panama, which he called “a sovereign nation and vital partner for global commerce.”Rubio linked those actions to Panama’s court decision over the Balboa and Cristóbal terminals, saying the United States stood with Panama and sought stronger economic and security cooperation.Court Ruling Stripped Port ConcessionPanama’s Supreme Court ruled on Jan. 29 that Law 5 of 1997, which approved Panama Ports Company’s contract to operate the Balboa and Cristóbal terminals, was unconstitutional.Panama’s presidency said the 69-page ruling was published in the official gazette on Feb. 23, making the decision final.The ruling’s dispositive section declared unconstitutional Law 5 of 1997, the contract’s addenda, and the 2021 extension and related acts issued through the Panama Maritime Authority.The ruling affected ports at both ends of the canal, not the canal waterway itself.Panama Ports Company is a subsidiary of CK Hutchison. CK Hutchison said on Feb. 12 that the ruling made continued operations at Balboa and Cristóbal impossible and that it had notified Panama of a dispute under an investment-protection treaty.The company said Panama Ports Company had started arbitration on Feb. 3 under the concession contract.Panama Moves to Temporary OperatorsPanama’s government said the Panama Maritime Authority took control of the two ports on Feb. 23 to comply with the Supreme Court ruling.The same day, Panama’s Cabinet approved two temporary concession contracts under an exceptional procedure.The Cabinet said APMT Panamá, S.A. would operate, maintain, and administer the port of Balboa for up to 18 months. It said TIL Panamá, S.A. would do the same at Cristóbal for up to 18 months.Maersk said on Feb. 24 that APM Terminals had begun a stabilization phase and temporary operations at Balboa after the government announcement.Canal and Ports Are SeparateThe Panama Canal Authority said the canal registered 13,404 transits in fiscal 2025, up 19.3 percent from fiscal 2024.Balboa sits on the Pacific side of the canal. Cristóbal sits on the Atlantic side. The two terminals handle cargo tied to the broader canal logistics network, while the canal waterway is administered separately.China’s Foreign Ministry said in March 2025 that China supports Panama’s sovereignty over the canal, recognizes the canal as a permanently neutral international waterway, and has never taken part in its management or operation.Chinese officials have also criticized Panama’s court ruling over the ports. In February 2026, China’s Foreign Ministry cited the Hong Kong and Macao Affairs Office as saying that the Panama Supreme Court’s ruling violated the lawful rights and interests of a Hong Kong company, and that China would safeguard the legitimate rights and interests of Chinese enterprises.Panama’s foreign minister, Javier Martínez-Acha, said April 8 that Panama’s commercial shipping fleet had seen an increase in inspections and detentions in Chinese ports after the court ruling.“Panama … respects the legal sovereignty of all countries, and we simply ask for the same treatment for ourselves,” Martínez-Acha said.