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When it comes to maritime power plays, China isn’t splashing about. It has subtly anchored its influence across Latin America, securing key ports near the Panama Canal—without firing a shot

Port2Port | by
GeoTrends Team
GeoTrends Team
A high-resolution aerial view of Puerto de Balboa in Panama, showcasing a bustling container port with numerous cargo ships, cranes, and stacked shipping containers. The vivid blue waters of the Pacific contrast with the industrial infrastructure, highlighting the port’s critical role in international trade and its strategic importance near the Panama Canal
Puerto de Balboa in Panama—now a strategic focal point poised at the heart of U.S.-China geopolitical tensions over global maritime dominance
Home » The Canal chessboard: China’s quiet conquest of Panama’s ports

The Canal chessboard: China’s quiet conquest of Panama’s ports

According to observations by Roberto Lafforgue, a career diplomat with military credentials and a knack for untangling geopolitical knots, China now controls two of the five major ports straddling the Panama Canal:

  • Balboa (Pacific Ocean): Managed by a Hong Kong-based subsidiary of Hutchison Ports, giving China a front-row seat to Pacific trade flows.
  • Cristóbal (Caribbean Sea): Also under Hutchison’s helm, conveniently located at the canal’s Atlantic gateway.

With these twin outposts, China holds both the entrance and exit points of one of the world’s busiest maritime shortcuts. Picture it as holding the keys to both your front and back doors—and politely insisting they’re just “helping with security.”

Why should anyone care?

Because about 5% of global trade sails through the Panama Canal. A hiccup here isn’t just Panama’s problem; it’s a potential migraine for global supply chains. If Sino-American tensions boil over, the ports could morph from commercial hubs to geopolitical chess pieces.

China’s Latin American checkpoints

But Panama is just the opening gambit. Lafforgue highlights China’s broader Latin American footprint:

  • Argentina: Not just tango and Malbec. China has stakes in deep-water ports and military-linked space installations.
  • Brazil: Beyond coffee and carnival, Chinese interests span ports, energy grids, and vast agricultural operations.
  • Peru: More than Machu Picchu; China controls key deep-water ports crucial for Pacific trade.
  • Ecuador & Peru: Mining and logistics hubs, because why settle for the coast when you can go inland?
  • Chile: Strategic moves in lithium (think EV batteries) and trade routes.

China isn’t merely investing; it’s setting up shop, reconfiguring trade dynamics one port at a time.

The American dilemma

So, what’s the U.S. to do? Washington faces two choices:

  1. Look away: Pretend it’s business as usual, hoping nothing explodes—economically or otherwise.
  2. Push back: Deploy the classic mix of diplomacy, economic maneuvering, and the occasional saber-rattling, risking an escalation right in its backyard.

Historically, the U.S. hasn’t been fond of foreign powers cozying up in the Western Hemisphere. Whether this leads to another round of geopolitical posturing or something less polite remains to be seen.

Kicking the hornet’s nest of geopolitics

Closing his LinkedIn post, Roberto Lafforgue writes pointedly: “Would Washington allow Beijing to control a gateway between the Atlantic and Pacific without resistance? History suggests otherwise. Who’s right and who’s wrong? That depends on perspective. But one thing is clear: Panama is no longer just a canal—it’s a frontline in the great power struggle of the 21st century.”

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