PolicyBrief
S.RES. 31
119th CongressJan 23rd 2025
A resolution calling on the Government of Panama to expel officials and interests of the People's Republic of China and terminate Chinese management of key Panamanian ports.
IN COMMITTEE

This resolution urges Panama to expel Chinese influence from its ports and infrastructure, while also encouraging the U.S. to increase support and investment in Panama to counter Chinese economic exploitation and ensure the Panama Canal's security.

Eric Schmitt
R

Eric Schmitt

Senator

MO

LEGISLATION

U.S. Resolution Urges Panama to Kick Out Chinese Companies from Key Ports, Citing Security Risks

This resolution is basically a call to arms for Panama to boot Chinese influence from its critical infrastructure, especially the ports. It frames China's growing presence as a major threat to the Panama Canal's neutrality and, by extension, U.S. security interests. The resolution wants Panama to review—and likely terminate—agreements that let Chinese state-owned or China-based entities manage important infrastructure, including the Balboa and Cristobal ports. It pushes for removing Chinese officials currently operating within Panamanian ports and other critical infrastructure projects. (Section 2)

Canal Crossroads

The bill kicks off by reminding everyone of the Panama Canal's massive importance to global trade and security in the Western Hemisphere. It points out the hefty historical investment – over $375,000,000 back in the day, which is more than $10,000,000,000 in today's money – that went into building the canal. It also highlights the 1977 Neutrality Treaty, which gives the U.S. the right to step in if the canal's neutrality is threatened. (Preamble)

Whose Canal Is It, Anyway?

This is where things get interesting. The resolution doesn't just ask Panama to reconsider its deals with China; it urges the U.S. to get way more involved. It suggests using the Neutrality Treaty as a reason to monitor and address any threats to the canal, including countering "foreign influence."(Section 3). It also calls for a framework that could restore operational control of the Panama Canal to a U.S.-Panama partnership. Think a joint task force overseeing canal security and operations. (Section 3). For someone working a regular job, this could mean the difference between smooth sailing for global trade and potential disruptions if tensions escalate.

Show Me the Money

Beyond the security angle, the resolution proposes some serious financial incentives. It urges the U.S. to offer "significant investments" to modernize Panama's canal infrastructure, providing an alternative to Chinese-funded projects. (Section 3). This could mean new jobs and business opportunities, but it also raises the question of whether this is about security or economic competition with China. For a small business owner, this could mean new opportunities or increased competition, depending on how it plays out.

Partnerships or Pressure?

Ultimately, the resolution calls on Panama to reaffirm its commitment to its own sovereignty and Western Hemisphere security by seeking partnerships that align with "democratic values and mutual respect." (Section 2). It's a not-so-subtle nudge towards the U.S. and away from China. It encourages Panama, and other allies, to keep an eye out for authoritarian regimes trying to exploit economic vulnerabilities for strategic gain. The big question is whether this will be seen as a genuine partnership offer or as the U.S. flexing its muscles in its backyard. The call to "restore" operational control could easily be viewed as an infringement on Panama's sovereignty.