House China Committee Raises Alarm over PRC Influence on the Panama Canal

Strategic Insights -

The House Select Committee on China has expressed growing concern over the malign influence of the Chinese Communist Party (CCP) on the Panama Canal. In a letter to the Minister of Maritime Affairs and Administrator of the Panama Maritime Authority, Luis Roquebert, Rep. John Moolenaar, chairman of the House Select Committee on China, highlighted the risks posed by CCP-directed entities in port concessions managed by CK Hutchison, a Hong-Kong based conglomerate. Moolenaar emphasized that any deal involving the ports of Cristobal and Balboa must exclude entities subject to the direction of the CCP, specifically naming the China COSCO Shipping Corporation as a point of concern.

Key Takeaways:

  • The House Select Committee on China has raised alarm over the PRC's influence on the Panama Canal, citing the risk of malign CCP influence in port concessions managed by CK Hutchison.
  • Rep. John Moolenaar, chairman of the House Select Committee on China, urged the Panama Maritime Authority to ensure that the firm controlling the ports of Cristobal and Balboa is not beholden to the Chinese Communist Party (CCP).
  • Initial reports suggest that CKH owes the government of Panama approximately $300 million in unpaid fees, demonstrating that firms subject to the CCP do not respect the sovereignty of countries where they operate.
  • The U.S. Defense Department has added COSCO to its list of Chinese Military Companies (Section 1260H of the National Defense Authorization Act for Fiscal Year 2021).
  • The China COSCO Shipping Corporation has been reported to have positioned political commissars on its ships, which are subject to the direction of the CCP.
  • Rep. Moolenaar emphasized that any deal involving the ports of Cristobal and Balboa must exclude entities subject to the direction of the CCP, such as COSCO.

Statistics:

  • The Panama Canal generates approximately $2.1 billion in revenue (2020 data).
  • CK Hutchison owes the government of Panama approximately $300 million in unpaid fees (initial reports).
  • The U.S. Defense Department has added 141 Chinese Military Companies to its list of entities subject to Section 1260H of the National Defense Authorization Act for Fiscal Year 2021.
  • COSCO operates 168 ships, with 143 of them being oceangoing merchant vessels.

Sources:

1. "House China Committee Raises Alarm over PRC Influence on the Panama Canal," press release, House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party, July 17, 2025.

2. "DOD Releases List of Chinese Military Companies in Accordance with Section 1260H of the National Defense Authorization Act for Fiscal Year 2021," U.S. Department of Defense, January 7, 2025.

3. Peter Eavis, "Panama Official Accuses Hong Kong of Port Operator of Misconduct," The New York Times, April 8, 2025.

4. Conor M. Kennedy, "Onboard Political Control - The Ship Political Commissar in Chinese Merchant Shipping," China Maritime Report No. 40, August 12, 2024.