Sen. Ted Cruz said Tuesday that China’s control over the Panama Canal posed “acute risks to U.S. national security,” claiming the Chinese Communist Party has developed a “militaristic interest” in the critical global trade route.
The Texas Republican told senators during a Senate Committee on Commerce, Science, and Transportation hearing that President Donald Trump has highlighted two critical issues: “the danger of China exploiting or blocking passage through the canal” and “the exorbitant costs for transit.”
“Chinese enterprises are now building a bridge across the canal at a leisurely rate, which will take nearly a decade. Chinese businesses also dominate container ports on either end. The half built bridge allows China to block the canal without warning, and the ports provide China with handy observation positions to timing such an action,” said Cruz, the committee’s chairman.
“This situation I believe poses acute risks to U.S. national security,” he wrote.
“Meanwhile, the high canal transit prices disproportionately burden Americans because US freight accounts for approximately three-quarters of canal transits. U.S. Navy boats pay extra costs that are solely applicable to warships. Canal earnings consistently surpass $3 billion,” Cruz added. “This money comes from both American taxpayers and consumers in the form of higher costs for goods.”
Cruz’s comments come as recently sworn-in Secretary of State Marco Rubio prepares to fly to Panama for his first overseas trip as the country’s top diplomat, AWN reports.
During his inaugural speech last week, Trump stated that “China is operating the Panama Canal” and that “we didn’t give it to China, we gave it to Panama, and we’re taking it back.”
According to the Associated Press, Panama’s President José Raúl Mulino denies any interference from China in the country’s administration.
However, Federal Maritime Commission Chairman Louis Sola said on Tuesday that “since 2015, Chinese companies have increased their presence and influence throughout Panama.”
“Panama joined the Belt and Road Initiative and terminated its diplomatic relations with Taiwan. Chinese corporations have been permitted to pursue billions of dollars in development contracts in Panama, many of which are projects right on or near the Panama Canal,” he told MPs. “Many contracts were awarded without a bid, labor regulations were ignored, and Panama and its people are now waiting to see how they have benefitted.
“It is all more concerning that many of these companies are state-owned and in some cases even designated as linked to the People’s Liberation Army,” Sola told reporters. “We must address the significant growing presence and influence of China throughout the Americas and in Panama specifically.”
Cruz also stated during the hearing that the Chinese Communist Party had a “militaristic interest in the canal” and that “Panama has emerged as a bad actor.”
“Panama has for years flagged dozens of vessels in the Iranian ghost fleet, which brought Iran tens of billions of dollars in oil profits to fund terror across the world,” Mr. Cruz said.
“We cannot turn a blind eye if Panama exploits an asset of vital commercial and military importance, and we cannot stay idle while China is on the march in our hemisphere,” he told reporters.
