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Panama: Crossroads of Empires · Episode 20 of 24 · 18 min

Who Actually Operates the Panama Canal? The Claim vs. the Record

From December 2024 the U.S. president said China was operating the Panama Canal. The record shows the Panama Canal Authority has run it since December 31, 1999, while a Hong Kong company held concessions for two container terminals. The episode follows what happened when the waterway and the wharf were confused, centered on the February 2025 dispute over toll exemptions.

Who's who

Where it happens

Timeline

  1. December 22, 2024Trump says the canal must not fall into the wrong hands; Mulino rejects the claim
  2. January 20, 2025Inaugural address claims China is operating the canal
  3. February 3, 2025Mulino announces exit from the Belt and Road Initiative
  4. February 5-6, 2025State Department announces free transit for U.S. vessels; the canal authority says it made no adjustment
  5. February 13, 2025Holsey's Southern Command posture statement
  6. April 9, 2025Security memorandum signed; 'first and free' disputed

Still debated

Whether U.S. warships transit free is unresolved: the U.S. described first and free passage, while the canal authority described a cost-neutral mechanism with compensation, and none has been located as implemented. The comptroller's reported loss figure of $1.2-1.3 billion rests on a report that is not public.

panama canalus-china rivalrytollsportsbelt and roadsovereignty
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