Defense Secretary Pete Hegseth is sounding the alarm on Beijing’s growing ambitions in the Western Hemisphere — accusing the Chinese Communist Party of trying to gain control over the Panama Canal as part of a broader strategy to threaten the United States.

“The communist Chinese want to control politicians,” Hegseth told Fox News. “They’re building infrastructure projects. They want to surveil. They want to take that canal. President Trump says, ‘Not on our watch,’ and we’re fighting back.”

Hegseth said that for years America had been “asleep at the wheel,” allowing China’s influence in Panama to expand unchecked. But under President Donald J. Trump’s leadership, the U.S. has secured two landmark agreements with Panama to reassert American dominance over the critical waterway.

The first, a joint declaration with the Panama Canal Authority, guarantees that U.S. military and auxiliary vessels will travel “first and free” through the canal — a vital strategic advantage given that 40% of the ships using it are U.S. vessels and 75% are going to or from American ports.

The second, a memorandum of understanding signed with Panama’s defense minister and president, expands the U.S. military presence in the region. Under the deal, Fort Sherman will reopen as a joint “Jungle School” training facility, and U.S. forces will be stationed there at Panama’s invitation to safeguard the canal from Chinese encroachment.

Hegseth hailed Panamanian President José Molina as “a pro-Trump, pro-America president” willing to stand up to Beijing’s pressure. “The communist Chinese want to control politicians. They’re building infrastructure projects. They want to surveil. They want to take that canal. President Trump says, not on our watch, and we’re fighting back.”

The move comes after Panama formally withdrew from China’s Belt and Road Initiative, a major geopolitical setback for Beijing. Hegseth also pointed to disturbing signs of Chinese influence in recent years — from Mandarin-language signs dominating the canal zone to CCP-funded projects like a tunnel beneath the canal that could be used for military surveillance.

“They’re building a tunnel underneath the canal they’re paying for. What could that be used for? Surveillance of submarines, of ships?” Hegseth warned. “Bridges over the top. I flew by their cranes in that port, antennas all over them. What are those used to do? Removing signage is not enough — you’ve got to remove the insidious influence.”

The Defense Secretary credited President Trump’s directive from the State of the Union — to take back U.S. control over the canal — as the catalyst for this renewed assertiveness. “The Chinese didn’t like what happened in Panama this week, not at all,” Hegseth said. “This is a return of U.S. leadership, peace through strength, and the course was charted by President Trump.”