By Jared G. Mitovich
August 19, 2025
Introduction:
Read more here: https://www.politico.com/news/magazine ... -00513603(Politico) PANAMA CITY — In his campaign and after his election, Donald Trump complained about high transit fees for U.S. ships crossing the Panama Canal, said the waterway was controlled by China and pledged to retake it. Now, eight months into his administration, he has looked far beyond the canal for ways to undercut Chinese influence in Panama — and created a political headache for leaders here.
The clearest example of the difficult situation Panamanian leaders find themselves in came in June, when the U.S. embassy in Panama announced that the United States was funding the replacement of phone towers built and operated by Huawei, the Chinese tech company, with those made by an American company. The embassy stated openly that the goal of the plan was to “counter China” in the country.
The announcement caught Panama’s president off guard. Already facing a national uproar over his previous perceived concessions to Trump, José Raúl Mulino quickly criticized the announcement but did not deny it. “I ask the U.S. Embassy to refrain from making public pronouncements about decisions made solely by the Panamanian government, regardless of the cooperation that may exist,” he told reporters, adding that he would personally inspect the new antenna installations.
The dust-up illuminated just how wide-ranging the United States’ plan to counter Chinese influence in Panama is — and how politically thorny it’s becoming for Panama’s government.
In recent years, China has wooed Panama and other Latin American countries with economic and security pledges in a bid to chip away at America’s influence in the region — building ports in Peru, smart cities in Brazil and a space facility in Argentina, while also loaning the region billions of dollars. China has undertaken a similar influence campaign in developing regions across the world, most notably in Africa. Its ultimate goal is to reap the trade and economic benefits of such projects and firmly assert itself throughout the world as a superpower
