Why US-Panama Canal Pact Is Sending Shockwaves Through Beijing, US-China Rivalry Grows | Panama
One of the world’s most strategic waterways is now the center of a global power struggle. The United States and Panama have signed a new defense and security pact to counter China’s growing influence around the Panama Canal, a vital trade route carrying nearly 5% of global trade and 40% of US container traffic.
US Defence Secretary Pete Hegseth says it’s about more than just military cooperation, it’s about safeguarding global supply chains and securing strategic advantage. Meanwhile, China’s footprint in the region, from ports to telecom, is raising alarms in Washington. The recent 19 billion dollars deal involving Panama Ports Co. and a US consortium has triggered backlash from Beijing and sparked an antitrust probe.
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