Panama Canal CEO refutes Trump assertion that China is in control, warns of 'chaos' with the end of Carter neutrality treaty.

The CEO of the Panama Canal has refuted President-elect Donald Trump's claim that the United States-built waterway is now under Chinese control.

"Ricaurte Vásquez Morales, the leader of the Panama Canal Authority, denied on Wednesday that China is involved in the canal's operations. He stated that the accusations against China are baseless."

"Rules must be followed without exceptions, as stated by Vásquez Morales. Discriminating against any group, including the Chinese or Americans, would violate the neutrality treaty, international law, and create chaos."

In the 1970s, Jimmy Carter, who was then President, reached an agreement with Panama's leader, known as the Torrijos-Carter Treaties. Under this agreement, the US was granted the right to use military force to protect the waterway from any threat to its neutrality, which was deemed essential at the time due to the threat of Soviet-aligned states. Additionally, Carter agreed that the Panama Canal would be handed over to Panama on December 31, 1999.

On Tuesday, a reporter queried Trump at Mar-a-Lago about whether he would guarantee the world that he would not employ "military or economic coercion" to seize control of the Panama Canal and Greenland.

"I cannot guarantee the outcome of those two options. However, I can say that the Panama Canal is crucial for our economic security. The Panama Canal was constructed for our military. It is currently being operated by China, which has abused the gift we gave them. It should have never been handed over to China."

At the Capitol, while former President Carter was being honored, Trump expressed his admiration for the man but voiced his opposition to the canal deal he had negotiated.

"In my opinion, Jimmy Carter lost the election due to his decision to give the Panama Canal, which was a bigger deal than the hostages. However, the Panama Canal is often overlooked because it is considered inappropriate to discuss. Trump later added that Carter was a good man, but that giving away the Panama Canal was a significant mistake in his legacy."

The Panamanian government has previously denied China's influence.

Trump posted on TRUTH Social last month, wishing "Merry Christmas to all, including the soldiers of China, who are operating the Panama Canal illegally but with love."

The claim that there are Chinese soldiers in the Panama Canal was rejected by President José Raúl Mulino, who stated at a press conference, "No Chinese soldiers are present in the canal."

The canal is owned by Panamanians and is a part of Panamanian territory. No conversation can be had about this fact, as he stated.

Trump Suggests Reclaiming Panama Canal: "We Foolishly Gave It Away" Trump's views align with those of the U.S. Department of Defense regarding the increasing Chinese investments in shipping ports globally.

In March, Gen. Laura J. Richardson, head of U.S. Southern Command, informed the House Armed Services Committee that the PRC's investments are portrayed as peaceful but in reality, they serve as entry points for the PLA's multi-domain access and strategic naval chokepoints.

"Richardson cautioned that the investments include vital infrastructure such as deep-water ports, cyber facilities, and space facilities. In Panama, State-Owned Enterprises (SOEs) controlled by the PRC continue to bid on projects related to the Panama Canal, which is a critical global strategic chokepoint."

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

The Hong-Kong-based company Hutchison Ports PPC has been operating two seaports on either side of the Panama Canal for decades, according to the New York Times. However, the Chinese government's implementation of national security laws on Hong Kong has led to increased scrutiny of companies operating in the region, including those involved in intelligence-gathering and military operations.

According to the newspaper, about 40% of U.S. container traffic passes through the Panama Canal.