The Panama Canal Authority (ACP) on Monday evening refuted statements made by U.S. Federal Maritime Commission (FMC) Chairman Louis E. Sola claiming that Panama Canal staff must go through Chinese security to get to their daily place of work.
“No Canal worker, in charge of critical operations, goes through Chinese security to get to his or her daily workplace,” the Panama Canal Authority said in remarks shared to local outlets.
The Panama Canal Authority issued the brief remarks on Monday evening in response to a statement issued by FMC Chairman Sola on Friday calling for President Donald Trump to use a U.S. sovereign wealth fund to make investments in Panama amid the increased presence of China in Panama and in the canal trade route, which he stressed as “troubling and must be addressed.”
Sola asserted that although the Panama Canal Authority has “responsibly and professionally” managed the interoceanic trade route for the past 25 years, it explained that its authority is limited and does not extend to other areas such as infrastructure development, real estate, or water management — areas that, the FMC Chairman asserted, are where China has increased its influence in the canal.
“It is in these areas, outside the authorities of the ACP, where Chinese and Chinese-linked companies have been successful in expanding their presence and influence in Panama,” Chairman Sola said.
The original statement included Sola stating, “One example illustrating the unacceptable status quo is that mission critical ACP employees must pass through Chinese security to get to their daily place of work.”
FMC announced on Tuesday that the statement had been “revised to remove a personal statement by Chairman Sola on ACP access.” Prior to its revision, the original statement was quoted by local Panamanian outlets.
The Panama Canal Authority, referring to Chairman Sola’s claims of canal workers having to go through Chinese security to get to their workplace, told local outlets, “If the mention is related to building 1000, where the port captaincy is located in Colon, these facilities have been located at the end of the Port of Cristobal, since before the transfer of the Canal in 1999, without implying in any way interference or intervention with Canal operations.”
According to the Panama Canal Authority’s website, “Building 1000” is the location of the Cristóbal Harbor Controller. Cristóbal is a port town located in Panama’s northern Colón Province, where the Panama Canal’s Caribbean entrance is located.
Chairman Sola suggested that once the U.S. sovereign wealth fund is created, its managers should partner with the Panama Canal to identify investment opportunities in and adjacent to the canal’s operational areas. The FMC Chairman explained that the proposal would yield at least three benefits to the United States.
“First, investing in ports, logistics facilities, or the Rio Indio Reservoir project would give the ACP more direct and effective responsibility for properties, businesses, and operations that are critical to the Canal but now outside their control,” Chairman Sola said. “Second, U.S.-ACP joint investments would address concerns about an erosion of neutrality. Third, American investments would guarantee access to the Canal and associated facilities.”
The FMC Chairman asserted that the billion-dollar cost of investments in marine terminals that he called for might seem expensive at first impression, but represents an “excellent value” when compared to the value of trade. He added that a $1 billion dollar investment in a Panamanian terminal is “essentially buying insurance and access for American shippers for pennies on the dollar, especially when realizing almost $1 billion in U.S. trade moves through the Canal daily.”
“The Panama Canal is an engineering marvel that is critical to the commerce of the United States. I applaud President Trump for flagging the troubling levels of influence the People’s Republic of China has achieved in Panama and for his vision in pursuing the establishment of a sovereign wealth fund,” Chairman Sola said.
“Strategic investments by the United States in Panama will have the effect of building bilateral relations, blunting the influence of China and ensuring that American shippers and companies always have the full benefit of access to the Canal,” he concluded.
The Panama Canal Authority’s brief Monday evening remarks denying Chairman Sola’s claims mark the latest development in an ongoing debate initiated by President Donald Trump in December after he called for the United States to regain control of the American-built trade route.
At the time, President Trump accused Panama of imposing “exorbitant” and “rip-off” transit fees on U.S. ships passing through the canal and asserted that Chinese soldiers are “lovingly, but illegally” operating the Panama Canal — which the United States controlled up until 1999, when it was handed over to Panama as per the the terms of a deal signed by both nations during the administration of late U.S. President Jimmy Carter in 1977.
Last week, China, through its embassy in Panama, claimed that the accusations made by the United States over Chinese influence in the canal were a “pure lie” amid an official two-day visit of United States Southern Command (SOUTHCOM) Commander Adm. Alvin Holsey to the Central American nation.
According to the United States Embassy in Panama, Adm. Holsey held talks with Panamanian Security Minister Frank Ábrego and Foreign Minister Javier Martínez-Acha Vásquez to discuss the bilateral security partnership. The group also planned to address security topics such as safeguarding the Panama Canal area from “Chinese Communist Party influence and control,” as well as collaborative efforts to curb illegal migration.
President of Panama José Raúl Mulino appeared to refer to the subject of Adm. Holsey’s visit and the topic of China’s influence in the Panama Canal in a social media post on Thursday in which he stated that the bilateral agenda with the United States is important and relevant — but stressed that, for Panama, it does not involve analyzing “situations that are not true.”
La agenda bilateral con EEUU es importante y relevante. Sin embargo, para Panamá, la misma no pasa por analizar situaciones que no son ciertas. No vamos hablar de lo que no es una realidad sino de aquellos temas que nos interesan a ambos países.
— José Raúl Mulino (@JoseRaulMulino) February 20, 2025
“We are not going to talk about what is not a reality, but about those issues that interest both countries,” Mulino’s message read.
Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.
