On Tuesday, experts from a US think tank pointed out at a hearing held by the Department of Homeland Security that the Chinese Communist Party’s investment in strategic ports in the Western Hemisphere, including five major ports in the United States, poses a threat to US national security.
As the erosion of China’s control over the Panama Canal has been in the spotlight, attention is focused on the communist regime’s investments in ports and critical infrastructure in the US backyard.
During the hearing held by the Transportation and Maritime Security Subcommittee of the Department of Homeland Security on February 11, experts highlighted China’s investments in strategic ports in the Western Hemisphere to counter the growing influence of the Chinese regime in the United States and countries in the Americas.
Experts at the hearing pointed out that China has invested in strategically significant ports in Panama, Peru, and Brazil. Chinese companies have shown interest in three ports in Mexico, the St. John’s Harbor in the Central American island nation of Antigua and Barbuda, and the Freeport in Jamaica.
Isaac Kardon, senior researcher of China Studies at the Carnegie Endowment for International Peace, testified at the hearing.
Kardon noted that two Chinese state-owned enterprises – China COSCO Shipping Group and China Merchants Group, along with Hong Kong-based CK Hutchison, are the main Chinese companies involved in operating US ports.
These Chinese companies hold minority stakes in the ports of Long Beach, Seattle, Houston, and Miami.
According to the testimony of Ryan Berg, Director of the Americas Program at the Center for Strategic and International Studies (CSIS), nearly 130 ports globally are to some extent owned or operated by China.
Berg added that more than half of the Chinese-controlled ports are located in major maritime routes and strategic chokepoints in the Western Hemisphere.
He stated that Beijing’s so-called “National Security Law” is equivalent to state-mandated espionage activities, referring to the Chinese authorities requiring Chinese companies to cooperate in intelligence collection efforts.
“The United States has woken up from its post-war slumber,” Berg said. “With our strategic adversary entrenched in our shared neighborhood, the US has finally awakened.”
Of the five major ports in Panama, two – Balboa Port on the Pacific side of the Panama Canal and Cristóbal Port on the Atlantic side – are controlled by subsidiaries of CK Hutchison, posing a significant security risk.
Many security analysts fear that in case of a conflict between the US and China, this waterway could be damaged or blocked.
Carlos Gimenez, Chair of the Transportation and Maritime Security Subcommittee, stated that President Donald Trump’s concern about Chinese companies operating ports in the Panama Canal is justified, as the canal is a major artery for global commerce and US Navy operations.
“This gives Beijing control over a strategic chokepoint on one of the world’s most important waterways and provides an opportunity to influence commercial shipping, gather intelligence on US and allied vessel traffic, and potentially restrict our Navy’s operations in times of crisis,” Gimenez said.
Since returning to the White House in January, President Trump has warned that the Panama Canal is being operated by China and vowed to take action. However, both China and Panama have denied this.
“China is running the Panama Canal,” Trump said in his inauguration speech. “We didn’t give it to China, we gave it to Panama, and now we want it back.”
Panama announced in January that it is reviewing the concession rights of Hutchison’s ports.
Following US Secretary of State Marco Rubio’s visit to Panama, President José Raúl Mulino announced that Panama no longer intends to continue with the Belt and Road Initiative infrastructure agreements with China, marking a significant diplomatic victory for the Trump administration.
Gimenez stated that the US will not allow foreign adversaries to control critical infrastructure vital to US national security.
“For over two centuries, based on the principles of the Monroe Doctrine, the US has been the primary guarantor of stability and security in the Western Hemisphere, and we must ensure that trade routes crucial to our economic security are not dominated by foreign adversaries,” he said.
Matthew Kroenig, Vice Chairman of the Atlantic Council, stated during the hearing that the US should work with neighboring countries to “decouple” from Chinese investments in ports and other critical infrastructure.
Kroenig pointed out that Panama’s review of ports controlled by Chinese companies could provide an opportunity for US companies and allies. If the concession rights were to be re-bid, they could potentially gain control of the ports.
Latin American countries may seek economic benefits from investments with China, but they may not fully understand the costs they will have to bear after the deals are completed.
Kroenig, who has worked on security affairs for the CIA and the Department of Defense, said, “Through investments, China solidifies usage rights to resources, captures elites, gains influence over governments, steers national policies in favorable directions, and undermines democratic norms, transparency, and environmental standards.”
He emphasized that the US should clearly articulate its positions, as contracts signed by Latin American countries with China on critical infrastructure, telecommunications, satellite, surveillance, and rare earth minerals pose security risks.
Experts noted that communist regimes are known for embedding software into equipment, such as container cranes, which could potentially expose countries to Chinese espionage.
Nevertheless, he indicated that trade with mainland China, such as agricultural trade, does not impact national security.
He suggested that rather than trying to counter Chinese investments in ports, the US should leverage its maritime cooperation networks in Asia and Europe to counter China.
Congress should prioritize legislation, such as the previous session’s American Chips Act, to build more ships and coordinate national maritime strategies. He recommended establishing maritime security advisors concurrently with legislation.
Kroenig added that the US could initiate a Chinese port repurchase program in Latin American countries with the help of the US International Development Finance Corporation and other multilateral financial institutions.
At the same time, the US should assist countries in removing Chinese equipment from ports, such as Huawei devices or ZPMC’s Chinese cranes.
Cary Davis, President of the US Ports Association, stated, “Our port industry believes that the best way to counteract Chinese influence, especially in ports in our hemisphere, is for the US to assert strong leadership through strategic port investments; we must work to maintain the modernization and global competitiveness of our port infrastructure.”