The CEO of the Panama Canal has denied President-elect Donald Trump’s allegation that the waterway built by the United States over a century ago is now under the control of China. 

“The accusations that China is running the Canal are unfounded,” Panama Canal Authority leader

Trump’s concerns echo those from the U.S. Department of Defense over growing Chinese investments in shipping ports around the world. 

Testifying before the House Armed Services Committee last March, Gen. Laura J. Richardson, the head of U.S. Southern Command, told lawmakers that the People’s Republic of China (PRC) “messages its investments as peaceful, but in fact, many serve as points of future multi-domain access for the PLA and strategic naval chokepoints.” 

“These investments include critical infrastructure such as deep-water ports, cyber facilities, and space facilities,” Richardson warned. “In Panama, PRC-controlled State-Owned Enterprises (SOEs) continue to bid on projects related to the Panama Canal – a global strategic chokepoint.” 

Five percent of world commerce passes through the Panama Canal, Richardson said. 

A cargo ship traverses the Agua Clara Locks of the Panama Canal in Colon, Panama, on Sept. 2, 2024. (AP Photo/Matias Delacroix, File)

Two seaports on either side of the Panama Canal have been run for decades by the Hong-Kong-based company Hutchison Ports PPC, the New York Times reported, noting how the Chinese government has increasingly implemented its national security laws on the island of Hong Kong that can force companies to comply with intelligence-gathering and military operations. 

Roughly 40% of U.S. container traffic runs through the Panama Canal, according to the newspaper.