'Unacceptable': Rubio warns Panama over Chinese influence on canal, says will take 'measures necessary' if not followed

US secretary of state Marco Rubio warned Panama’s President José Raúl Mulino on Sunday to reduce China’s influence over the Canal area or face "measures necessary" to protect its rights of Americans under the treaty.
Rubio’s message, delivered during his first foreign trip as secretary of state, reflects President Donald Trump’s demand for greater US control over the vital trade waterway.
Rubio reportedly told Mulino that China’s growing presence in the canal area could violate the 1977 Panama Canal Treaty, which ensured neutrality and free passage for global trade.
According to a state department summary, Rubio made it clear that the current status quo is “unacceptable” and that the US could take “measures necessary” to protect its interests, reported the news agency AFP.
Panama took full control of the canal in 1999 under the treaty signed by former US President Jimmy Carter. However, Trump has repeatedly questioned whether the US should reclaim authority over the canal, calling it a strategic asset vital to American security.
Mulino pushes back, says sovereignty “not in question”
Despite Rubio’s strong message, Mulino downplayed the threat, saying the talks were “respectful” and “positive”. He insisted that Panama’s sovereignty over the canal remains intact, though he acknowledged US concerns by ordering an audit of the Hong Kong-based company Hutchison Ports, which operates ports on both sides of the canal, according to the news agency AFP.
Mulino also confirmed that Panama would not renew its Belt and Road Initiative agreement with China once it expires, signalling a possible shift away from Chinese influence.
Rubio’s visit sparked anti-US protests in Panama City, where 200 demonstrators gathered, chanting “Marco Rubio out of Panama” and “One territory, one flag”. Protesters burned an effigy of Rubio, along with a banner featuring Trump’s image. Riot police deployed tear gas to disperse the crowd near the presidential palace.
Union leader Saul Mendez slammed the US pressure, saying, “We reiterate that there is absolutely nothing here for Trump. Panama is a free and sovereign nation”, as per AFP.
Trump, who has placed China at the centre of his foreign policy agenda, has repeatedly claimed that Chinese investments in Panama’s infrastructure could pose a national security risk. Port facilities at both ends of the canal are controlled by Hutchison Ports, a Hong Kong-based company that was recently granted a 25-year no-bid extension.
While Mulino has ruled out US control, some analysts believe Panama may consider a compromise, such as transferring canal operations to an American or European company instead of a Chinese one.
However, it remains unclear whether Trump would accept such an alternative.
Rubio, who will visit El Salvador, Costa Rica, Guatemala, and the Dominican Republic next, is expected to press Latin American leaders on Trump’s key priority—immigration enforcement.
He has also approved waivers for some US foreign aid programs, despite the administration’s freeze on funding for Central America.