Why Is Trump So Concerned About Panama Canal?

 Why did Trump come out so quickly with his talk about the Panama Canal?  Because China seems to be prepping for war with Taiwan, which means USA will also instantly be at war with China the day they invade.  And China operates ports at both ends of the canal…and Trump is probably wise to not think that’s likely not in the best interest of USA.

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Although Panama technically owns the canal, China operates ports at both ends of it. This gives Beijing the opportunity to militarize its control over it with dual-use infrastructure, potentially positioning it to deny access to the critical waterway, particularly to the United States.

Today, China is the canal’s second-largest customer, behind only the United States. Some believe that Beijing’s influence has already led to disproportionately higher transit costs for the United States and that it violates Panama’s neutrality policy that was negotiated by a treaty with the United States in 1978.

The Trump administration believes that the treaty has already been broken, so U.S. action is justified. It also believes that Beijing’s de facto controlover the Panama Canal poses a direct threat to U.S. economic, military, and geopolitical interests in the region and the world.

The administration is correct in its assessment.

The ‘Panama Strategy’ Goes Global

In the larger picture, the Chinese Communist Party (CCP) through its Belt and Road Initiative (BRI) has deepened its presence and influence in Latin America, as it has in many strategic areas around the globe. The BRI, also known as “One Belt, One Road,” is a global infrastructure and investment scheme to insert Chinese money, influence, and personnel into nations worldwide by building needed infrastructure such as roads, railways, ports, and energy pipelines.

BRI participation typically weakens foreign governments by leaving them deep in debt to Beijing, resulting to some degree in a loss of sovereignty or control over Chinese-built ports and other infrastructure.

Panama’s relinquishment of economic control of the canal to Beijing is a great example of the CCP’s overarching strategy. Its “Panama Strategy” is a systematic way of gaining control over the world’s strategic waterways, shipping lanes, and ports.

This strategy’s main elements involve establishing a global naval presence, extending influence through its BRI deals, and building military sites and artificial islands in key locations around the world. The goal is to expand the Chinese regime’s power in order to overturn the U.S.-led global trading system and its open shipping lanes policy. The Panama Canal isn’t the first, but it is one of many strategic waterways that China controls through either infrastructure investments, or a military presence through its BRI program, or with both.

Beijing’s Big Board Game

For Beijing, the most critical area is the South China Sea. With about $3 trillion worth of trade (one-third of global shipping) passing through it annually, China has built artificial islands and military installations in the region to assert its dominance. Of course, this poses a direct challenge to U.S. security guarantees to nations in the region, from Taiwan to South Korea and Japan. This has led to rising tensions with neighboring countries and global powers, especially with the United States and Taiwan.

The Strait of Malacca is another narrow passage for global trade with a heavy Chinese naval commercial presence established through the BRI. With 60 percent of its imports and 80 percent of oil imports from the Middle East passing through the strait, it’s a strategic vulnerability to Beijing.

The CCP also exerts significant influence in the Suez Canal Economic Zone. Egypt is a BRI participant, and this vital passage linking the Mediterranean Sea to the top of the Red Sea enables China to monitor and potentially control trade between Europe, Asia, and Africa.

https://www.zerohedge.com/geopolitical/beijings-panama-strategy-global