Hegseth Warns of China’s Panama Grab: “We’ve Been Sort of Asleep at the Wheel”
Defense Secretary Pete Hegseth is raising the alarm over Communist China’s aggressive ambitions in the Western Hemisphere, warning that the Chinese Communist Party is targeting one of the world’s most strategic waterways — the Panama Canal — in an effort to gain control over a vital artery of American commerce and security.
Speaking on Fox News, Hegseth said, “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.”
Hegseth, a former Army officer and strong advocate for President Donald J. Trump’s “America First” doctrine, minced no words about how past administrations allowed Beijing to gain leverage in the region: “We’ve been sort of asleep at the wheel.”
But that era, he stressed, is over.
Last week, the Department of Defense announced major strategic wins in Panama under Hegseth’s leadership. Among them: a historic joint declaration that ensures U.S. military and auxiliary vessels can pass through the canal “first and free” — a critical win for American naval mobility. In addition, the U.S. signed an agreement to ramp up joint security operations with Panama, enhancing both nations’ defense posture.
Crucially, Hegseth pointed to Panama’s exit from China’s controversial Belt and Road Initiative as proof that the tide is turning. Beijing’s economic tentacles, long spread through predatory loans and covert surveillance infrastructure, are being cut off — one courageous partner at a time.
“President Trump said in his State of the Union address China has too much influence over the Panama Canal, and America’s going to take it back,” Hegseth declared. “That’s exactly what I was charged to do, what we’re continuing to do. China’s influence cannot control our own backyard, especially a critical waterway, key terrain like the Panama Canal.”
Hegseth highlighted that roughly 40% of ships passing through the canal are U.S.-flagged, and 75% are U.S.-bound or departing from U.S. ports — underscoring the immense strategic importance of regaining control. “We were able to secure two historic agreements,” he said, detailing the Panama Canal Authority’s commitment to prioritize U.S. vessels and a separate memorandum of understanding with Panama’s president to reopen Fort Sherman as a joint U.S.-Panamanian Jungle School.
“That’s pushing out nefarious, malicious Chinese influence,” Hegseth emphasized. “We’re going to have a larger U.S. presence at the invitation of Panama, working with them to keep the communist Chinese out. If we can’t use that waterway in a key contingency, then China has an advantage.”
He continued by praising Panamanian President Ricardo Molina, describing him as “a pro-Trump, pro-America president of Panama, who’s sticking his neck out against communists.” According to Hegseth, Chinese activity in the country wasn’t just abstract — it was visible, palpable. “We could see it, you could feel it.”
Fox host Maria Bartiromo echoed those concerns, sharing what President Trump had told her during a recent interview: that the signage surrounding the canal was all in Chinese — a chilling visual of how dominant Beijing’s influence had become.
Hegseth confirmed those reports. “Correct. They’re building a tunnel underneath the canal they’re paying for. What could that be used for? Surveillance of submarines, of ships? Bridges over the top. I flew by their cranes in that port, antennas all over them. What are those used to do?”
While some of that visible influence is now being rolled back, Hegseth warned that symbolism isn’t enough. “Removing signage is not enough. You’ve got to remove the insidious influence.”
The broader message was clear: the Trump administration’s second term isn’t merely reacting to China’s aggression — it’s asserting decisive leadership to reclaim vital American interests and restore dominance in the Western Hemisphere.
“The Chinese didn’t like what happened in Panama this week, not at all,” Hegseth concluded. “Because this is a return of U.S. leadership, peace through strength, and the course was charted by President Trump.”