There are five container ports around the Panama Canal, all of which are operated by foreign companies. Charting China’s impact on the Panama Canal reveals a crucial shortcut that saves ships from a lengthy detour around the tip of Chile. Since Panama joined the Belt and Road Initiative (BRI) in 2017, Chinese companies have increased their presence around the canal, prompting concerns about Beijing’s influence. The US has been particularly critical of Chinese control over ports near the canal, although this predates the BRI. The largest container ports at either end of the canal, Cristóbal and Balboa, have been operated by a subsidiary of a Hong Kong-based company since 1997. While this company is independent, experts warn that in times of conflict, China could leverage its influence over Hong Kong-based firms. Chinese involvement in other projects around the canal, such as the construction of new bridges and terminals, has also attracted attention. Despite these developments, Panamanian authorities have recently halted several high-profile Chinese-led projects, indicating a complex relationship between Panama, China, and the United States. Mapping China’s Influence in the Panama Canal Tracing China’s impact on the Panama Canal

A dashed line illustrates the alternate route ships would have to take without the Panama Canal, which would require traveling all the way down to the tip of Chile and back up the other side of South America. «,»block_52_scrolly_type»:»fade»,»block_52_image_1_src»:» map of the Panama Canal highlights Isla Margarita just off the Atlantic Ocean»,»block_52_image_1_credit»:»»,»block_52_image_1_box_1_type»:»basic»,»block_52_image_1_box_1_align»:»left»,»block_52_image_1_box_1_theme»:»light»,»block_52_image_1_box_1_text»:»In 2022, a major project intended to develop a new port on Isla Margarita on the Caribbean side of the canal was cancelled.»,»block_52_image_2_src»:» map of the Panama Canal highlights A rail line between Panama City and David, of 243 miles or 391km»,»block_52_image_2_credit»:»»,»block_52_image_2_box_1_type»:»basic»,»block_52_image_2_box_1_align»:»left»,»block_52_image_2_box_1_theme»:»light»,»block_52_image_2_box_1_text»:»A proposed high-speed rail line across the country from Panama City to David in the west of the country was also shelved after a new government came to power in Panama.»,»block_52_image_3_src»:» map highlights where the Chinese embassy would have gone, just off the Pacific Ocean»,»block_52_image_3_credit»:»»,»block_52_image_3_box_1_type»:»basic»,»block_52_image_3_box_1_align»:»left»,»block_52_image_3_box_1_theme»:»light»,»block_52_image_3_box_1_text»:»And a plan to build a new Chinese embassy on the Amador Causeway Islands – which sit at the gates of the canal – was cancelled in 2018. «,»block_60_scrolly_type»:»static»,»block_60_content_2_text»:»Experts who spoke to the BBC have suggested that China’s influence over infrastructure had mainly expanded to fill a gap left by the US in the region. «,»block_60_content_3_text»:»Mr Tapiero told BBC Verify that US companies were frequently uninterested or uncompetitive in bidding processes compared to Chinese competitors – who he said were often willing to offer finance when seeking deals. «,»block_60_content_4_text»:»Statistics for foreign direct investment (FDI) – the amount of money countries are investing in another country – paint a similar picture. «,»block_60_content_5_text»:»China invested $1.4bn in Panama in 2023 – a fourfold increase since the start of the BRI in 2017 – while US investments, although far higher overall, have declined over that same period. «,»block_61_scrolly_type»:»static»,»block_61_content_1_crosshead»:»Annual investment in Panama»,»block_61_content_2_image_src»:» chart shows US investment between 2017 and 2023 compared with Chinese investment. US investment was $4.5bn in 2023, very similar to 2017. After 2017, investment increased to peak at $5.5bn in 2019 before falling to $3.5bn in 2020 and then rising against to $4.5bn in 2023. Chinese investment was $1.4bn dollars in 2023. There has been steady growth year on year since 2017, when it was just under $359m»,»block_61_content_2_image_caption»:»»,»block_61_content_2_image_credit»:»»,»block_61_content_2_image_format»:»standard»,»block_61_content_3_text»:»From October 2023 to September 2024, shipping to or from China accounted for 21% of the cargo going through the waterway according to figures from the Panama Canal management company.»,»block_61_content_4_text»:»However, the US remains the biggest investor in Panama and the top user of the canal by some distance.»,»block_61_content_5_text»:»Last year, three and half times as much cargo passed through the canal going to and from the US than China.»,»block_62_scrolly_type»:»static»,»block_62_content_1_crosshead»:»Cargo via the Panama Canal, top 15 countries, Oct 2023 to Sep 2024″,»block_62_content_2_image_src»:» graphic of a box is divided up into rectangles of different sizes based on the tons of cargo to and from each country via the Panama Canal. The USA had by far the most with 163m tonnes. Next was China with 46m tonnes. Other countries listed with smaller quantities of Cargo are Japan, South Korea, Chile, Mexico, Peru, Eduador, Colombia, Panama, Guatemala, Canada, Spain, Taiwan and Brazil»,»block_62_content_2_image_caption»:»»,»block_62_content_2_image_credit»:»»,»block_62_content_2_image_format»:»standard»,»block_62_content_3_text»:»Beijing’s influence in Panama may well be on the decline, says Henry Ziemer of the CSIS.»,»block_62_content_4_text»:»The Panamanian authorities have “had a taste of what infrastructure partnership with China looks like, and they are not too pleased with that. It hasn’t delivered the big flashy gains that were promised when they first signed onto the BRI.”»,»block_62_content_5_text»:»“That is why – along with pressure from Washington – the sense is now that Panama is seeking to move away from China.”»,»credits_title»:»Credits»,»credits_para»:»Produced by Daniel Wainwright, Dan Smith, François de Montremy and Louise Hunter. Satellite images: Maxar. All other images: Getty and EPA. Data sources: Nasa SRTM, Open Street Map»,»onward_journeys_title»:»More on this story»,»onward_journey_1_summary»:»Does China ‘operate’ Panama Canal, as Trump says?\n»,»onward_journey_1_link»:» large cargo ship on the Panama Canal being pulled by a tug boat»,»onward_journey_2_summary»:»Rubio demands Panama ‘reduce China influence’ over canal\n»,»onward_journey_2_link»:» Rubio waving on a visit to the Panama Canal»,»onward_journey_3_summary»:»Panama Canal will stay in our hands, minister tells Trump\n\n»,»onward_journey_3_link»:» in Panama wave flags to celebrate the anniversary of the handover of the Panama Canal»,»outputs»:[«wrapper»:»full-width»,»wrapper»:»embed»,»wrapper»:»core»,»wrapper»:»envelope»,»wrapper»:»amp»,»wrapper»:»news-app»,»wrapper»:»syndication»,»photoCaption»:»»,»photoURL»:»»,»hyperlinkCallToAction»:»Click here to see the BBC interactive»,»wrapper»:»applenews»,»photoCaption»:»»,»photoURL»:»»,»hyperlinkCallToAction»:»Click or tap here to see interactive content»],»usesAppJs»:true,»autoFixLintingErrors»:false,»polyfill»:false,»dynamicImports»:true,»dynamicPolyfills»:[«core-js/modules/es.promise»,»core-js/modules/es.array.iterator»,»core-js/modules/es.array.filter»,»core-js/modules/es.array.from»,»core-js/modules/es.array.map»,»core-js/modules/es.array.reduce»,»core-js/modules/es.object.assign»,»core-js/modules/es.object.entries»,»core-js/modules/es.object.from-entries»,»core-js/modules/es.object.keys»,»core-js/modules/es.object.values»],»reactProject»:false,»preactProject»:false,»failFast»:false,»includePath»:»responsive»:true,»newsapps»:true,»app-image»:» or tap here to see interactive content»,»languages»:[«english»],»destinationSection»:»english»:»uk»,»uncompressedAppBudget»:»(1024 * 1000) * 0.5″,»meta»:»title»:»english»:»»,»images»:[«thumbnail»:»»],»hasBeenDeployed»:false,»publication_date»:null,»publication_date_iso»:null,»last_modified»:null,»last_modified_iso»:null,»data_last_modified»:null,»data_last_modified_iso»:null,»keywords»:[«vj»,»visual-journalism»,»visualjournalism»,»visual journalism»],»locations»:»regions»:[],»handlebarsPartials»:[«picture»],»defaultPort»:1031,»usedPort»:1031,»generateForMozart»:true,»hasGithubRepo»:true,»bespokeOrbitCacheTTL»:false,»shouldAllowDeviceTracking»:true,»shadowDom»:true,»generator»:»basic-project»,»projectNamespace»:»newsspec-40403-panama-canal»,»generatorVersion»:»11.0.3″,»projectName»:»newsspec-40403-panama-canal»,»outputDir»:»include/newsspec/40403-panama-canal»,»optimiseImagesOnEveryBuild»:false,»includes»:»app»:»uuid»:»943c9a5e-32c0-4eae-8abb-4d9c4c6eae1e»,»pathToWrapperAssets»:»