Unlock the White House Watch newsletter for free
A guide to what the 2024 US election means for Washington and the world
The Panamanian government on Monday began an audit of a Hong Kong company that operates ports at either end of the Panama Canal, after U.S. President Donald Trump warned that he wanted to take back the canal over alleged Chinese influence.
In his inaugural address on Monday, Trump reiterated his criticism of the Panama Canal in recent weeks, which handles about 3% of global seaborne trade annually.
The move came as Panama’s Auditor General’s Office posted a video on social media platform Seen as a nod to Trump.
“Today our auditors arrived [the company] A detailed audit has begun, aimed at ensuring the efficient and transparent use of public resources,” the Auditor General’s Office said on X.
Hutchison Ports, a ports subsidiary of Hong Kong-listed group Chang Hutchison Holdings, operates 53 ports in 24 countries including the UK, Germany and Hong Kong.
In 1997, the year Britain returned Hong Kong to Chinese rule, it was first granted a concession to operate two ports, one at each end of the canal. These offers are updated for 2021.
CK Hutchison Holdings, controlled by the Li Ka-shing family, one of Asia’s richest families, also operates a massive global infrastructure portfolio including Britain’s Northumberland Water and Australia’s Gas Networks.
China does not control the canal, but some officials in Washington are increasingly concerned about the presence of Chinese companies in the region. Hong Kong’s government has grown closer to China since a crackdown on pro-democracy protests in 2019 and the introduction of tough national security legislation.
CK Hutchison did not immediately respond to a request for comment on the Panama audit.
The United States oversaw the construction of the canal, which opened in 1914, but handed full control back to the Central American country in 1999.
The cost of crossing the canal, which uses fresh water to operate its locks, has risen sharply since a major drought in 2023 led to changes in canal restrictions and later how time slots are allocated.
“We were treated very badly for this stupid gift that we shouldn’t have given,” Trump said. “We didn’t give it to China, we gave it to Panama, and we’re going to take it back.”
Panama has long been one of the United States’ closest allies in Central America and has sought to stem migrants heading to the United States through the notorious Darien Gorge. During Trump’s first term in 2017, the country severed ties with Taiwan and recognized China.
Panamanian President José Raul Mulino, a law-and-order conservative, issued a strongly worded statement on Monday “totally rejecting” Trump’s remarks and said the canal would remain Panama’s.
He added that no country was interfering in the management of the canal and that dialogue was the best way to resolve the issues raised by Trump. He also disagreed with Trump’s characterization of the U.S. returning the canal to Panama.
He wrote on
