Part 6/8:
Compounding these challenges are geopolitical tensions centered on the canal. Control of the Panama Canal has shifted since it was handed over to Panama in 1999, but the US remains the canal's largest user, accounting for about 75% of its traffic. China, now the second-largest user, has been investing in Panama’s infrastructure, leading to fears in Washington about Chinese influence over this key global trade artery.
Amid these concerns, Panama's new leadership is seeking to reassure the US of its sovereignty over the canal. However, many view China’s involvement as a potential threat to US economic dominance and a strategic challenge across Latin America.