Panama Canal and Trump: How much influence does China really have?

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President Donald Trump’s administration sees Chinese influence as a massive threat.

During his inauguration speech, he repeated his desire to retake control of the Panama Canal, the vital strategic waterway that connects the Atlantic and Pacific oceans.

Mr. Trump’s secretary of state, Marco Rubio, said at his confirmation hearing that China is “the most potent and dangerous near-peer adversary this nation has ever confronted.” During his visit to Panama on Sunday, he stated that Panama must reduce China’s influence in the canal.

Why We Wrote This

The Trump administration wants to blunt what it says is China’s influence over the Panama Canal. Here, we explain the stakes and the U.S. relationship with Panama and the canal.

In a U.S. State Department summary of his meeting with Panamanian President José Raúl Mulino, Mr. Rubio said that if the Central American country didn’t do that, “It would require the United States to take measures necessary to protect its rights under the treaty.”

Here’s a deeper look at some questions raised by Mr. Trump’s comments.

What’s the status of the canal now?

The canal is owned and administered by the Panama Canal Authority, a Panamanian government agency. The U.S. controlled it from its 1914 completion until 1999, when it was handed over to Panama under the 1977 Torrijos-Carter Treaties. The first of those treaties permits the U.S. military to preserve the canal’s neutrality, allowing perpetual U.S. use of the canal.

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