China accuses US of 'blackmail' after Hegseth's Panama Canal remarks

The Chinese government is accusing the U.S. of “blackmail” after U.S. Defense Secretary Pete Hegseth declared Beijing a threat to the Panama Canal, asserting that Washington along with Panama “will take back” the waterway from Chinese influence.

The Chinese Foreign Ministry on Wednesday said Hegseth had “maliciously attacked China” with his comments and was sabotaging China-Panama cooperation.

“Everyone knows who wants to control the Panama Canal,” ministry spokesperson Lin Jian told reporters. “The U.S. side should take a look in the mirror to see who really threatens the sovereignty, security, and development of other countries.”

Lin also accused the U.S. of “spreading rumors and sowing discord,” calling on Washington to “stop deliberately linking China to the canal issue to find excuses for the U.S.'s desire to control the Canal.”

And a day earlier, the Chinese Embassy in Panama accused the U.S. of using “blackmail” to further its own interests and said Washington did not have a right to interfere with whom Panama carries out business.

Asked about Beijing’s accusations on Wednesday, Hegseth replied: “I don’t know anything about blackmail ... but I do know about strength, peace through strength and deterrence.” 

Hegseth during a Tuesday ribbon-cutting ceremony for a new U.S.-financed dock on the Panama Canal said the U.S. “will not allow communist China or any other country to threaten the canal’s operation or integrity.” 

He highlighted the growing security relationship between Washington and Panama City to counter Beijing, warning that Chinese companies “continue to control critical infrastructure” in the canal, giving Beijing the “potential to conduct surveillance activities” across the country.

The comments follow assertions from President Trump that China effectively controls the trade route via two major ports on either end of the shipping lane. 

In his message, Hegseth alluded to those ports, which are controlled by CK Hutchison, a private company in Hong Kong now in the process of selling its controlling stake to U.S. investment firm BlackRock Inc.

“This makes Panama and the United States less secure, less prosperous and less sovereign,” Hegseth said of the potential Chinese spying. “And as President Donald Trump has pointed out, that situation is not acceptable.”

And on Wednesday, Hegseth said the U.S. was “standing up to malign Chinese influence,” with its security partnership with Panama.