Panamanian President José Raúl Mulino denounces US allegations of Chinese interference in the Panama Canal as baseless, defending national sovereignty while honoring the historic Chinese diaspora’s contributions.

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A Canal, Two Empires

The Panama Canal,a lifeline for 6% of global trade,has become the latest battleground in Washington’s cold war with Beijing. As US officials, including Defense Secretary Pete Hegseth, escalate in his rhetoric about taking back the canal from Chinese influence , Panamanian President José Raúl Mulino fires back: “This is neo-colonial paranoia. Show us the evidence or stop the lies.”

Mulino invoked history: “Chinese laborers’ bones are buried next to the Canal’s locks. Their descendants are Panamanian citizens.” He highlighted how US accusations erase both the Canal’s 1999 handover,a hard-won victory against colonial control,and China’s century-old diaspora, integral to Panama’s identity .

US officials recently alleged China receives preferential toll rates,a claim Panama’s Canal Authority called “a lie to justify intervention.” Data shows US ships pay identical fees as others, with Mulino quipping: “If we favored China, why did 70% of last year’s cargo go to US ports?”.

Beijing’s embassy condemned the US for “inventing enemies to justify militarization,” citing Panama’s adherence to neutrality treaties. Analysts note the Canal’s strategic value for US warships in potential Asian conflicts,a possible motive behind the smear campaign.

El presidente panameño, José Raúl Mulino, rechazó el lunes en entrevistas con varios medios de comunicación las acusaciones estadounidenses sobre una supuesta "injerencia china en el Canal de Panamá" https://t.co/MT1VZVnTUT pic.twitter.com/QCs3zU3J9w

— China Xinhua Español (@XHespanol) April 16, 2025

The Ghost of Gunboat Diplomacy
Hegseth’s pledge to “take back” the Canal echoes 20th-century US invasions, stirring trauma among older Panamanians. “My grandfather survived the 1989 invasion,” said union leader Diego Mendoza. “Now they want to ‘save’ us from a threat that doesn’t exist.”

By aligning with CARICOM and Latin American leftists, Mulino seeks regional backing against “gringo exceptionalism.” His nod to China’s Belt and Road investments,without ceding an inch of Canal control,frames Panama as a sovereign bridge, not a pawn.

As US-China tensions boil, Panama refuses to be collateral damage. Mulino’s stance, supported by facts not flags ,exposes the hypocrisy of a superpower that preaches sovereignty while rehearsing invasion narratives. For now, the Canal remains Panamanian.

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