CNBC reporter takes a boat tour of the Panama Canal to gain insight into why Trump insists on reclaiming control of the canal.

Every year, about 14,000 ships pass through the Panama Canal, with the United States and China being the two countries with the largest transport volumes. Forty percent of the United States' containers (worth $270 billion) must pass through this fifty-mile stretch of water. Since Trump claimed that China is using the Panama Canal to connect the "Belt and Road" initiative, various political conspiracy theories and speculations have arisen. Trump has vowed to reclaim the Panama Canal. In March of this year, an investment group led by BlackRock of the United States announced plans to acquire two ports in the Panama Canal from China Yangtze River Shipping Company and about 40 other ports. This acquisition has yet to be finalized. Due to ongoing rumors that China is obstructing Li Ka-shing's sale of the ports, the Panama Canal has become the focus of global news.

To gain a deeper understanding of whether the Panama Canal is truly important to the United States, CNBC reporter Lori Ann Larocco boarded a tugboat to interview the Panama Canal Authority, tugboat operators, and reference data in order to learn about the political issues surrounding the Panama Canal and its current operational status. Below is a summary report of the key points from the video.

Trump believes that Panama is overcharging the United States.

According to the Panama Canal Authority (, since 2019, canal revenues have grown by 55%, and profits have surged by 124%. Last year's total revenue was approximately $5 billion, with a net income of around $3.5 billion, of which about $2.4 billion in net income flowed to the Panamanian government, while the remaining funds stayed with the Panama Canal Authority for project financing. The canal contributes about 7.7% to Panama's GDP each year.

Trump believes that the United States funded the construction of the canal, allowing the Panamanian government to earn about 3 billion dollars each year. However, Panama is friendly with China and charges the U.S. excessive fees. In response, officials from the Panama Canal Authority stated that they treat every country fairly in terms of fees. He believes this is a political issue in the U.S.-China rivalry and has nothing to do with Panama. He mentioned that the charges for the canal depend on the size of the vessels, the number of containers, and the locks used. Additionally, vessels must also pay fees for passage, reservations, bidding, towing, and navigation services.

Due to the drought in 2023 leading to lower water levels, the Panama Canal has modified its auction system, reducing the number of vessels scheduled to transit the canal and increasing costs. In 2024, the transit fee for a single vessel through the Panama Canal reached a record $3.9 million, plus an additional $500,000 in transportation fees, resulting in substantial profits.

What is the extent of China's influence on the Panama Canal?

Trump said he wants to reclaim the Panama Canal. He stated that China is operating the Panama Canal, and the United States handed over the management of the Panama Canal to the Panamanian government, not to China. The rights to the Panama Canal should be returned to the United States. The canal leased by Panama has five main ports, currently managed by different companies, two of which are Cheung Kong Holdings headquartered in Hong Kong, and three new ports come from the United States, Singapore, and Taiwan.

Boris Moreno, the Deputy Director of the Panama Canal Authority, stated that China has no influence over Panama, and that this is all a lie, a problem between the US and China. However, many critics believe that Beijing could deploy military assets or gather intelligence using ports controlled by China, while China claims it has never interfered with the operation of the canal.

Panama is the first Latin American country to join China's "Belt and Road".

In 2017, Panama became the first Latin American country to join China's Belt and Road Initiative ).

The China Railway Design Corporation has completed a high-speed train research report proposed by the Panamanian government to the Costa Rican border, and expressed interest in participating in other projects, including the construction of the Amador cruise terminal on the Pacific side of the canal by China Harbour Engineering Company, as well as the construction of a bridge crossing the Panama Canal with a budget of approximately 1.4 billion USD by a state-owned Chinese company. Republican Congressman Ted Cruz believes that if China clears the Panama Canal channels, it could potentially block U.S. military supplies from crossing the river, which would put the United States in a military crisis.

Panama was once a country with serious corruption.

A report from the U.S. State Department in 2021 stated that Panama's executive, judicial, and legislative branches face serious corruption issues.

Panama announces the termination of its participation in China's Belt and Road Initiative.

In February of this year, U.S. Secretary of State Rubio met with Panamanian President Mulino, clearly indicating that the U.S. would take measures to protect the "Canal Treaty." Mulino subsequently announced that Panama would terminate its participation in China's Belt and Road Initiative. During a visit to Panama, the U.S. Secretary of Defense stated that the two countries would strengthen military training and expected to reach an agreement allowing U.S. warships to pass through the canal for free. The Panamanian authorities disputed this statement. During the Secretary of Defense's visit, two U.S. Navy missile cruisers, four F-18 fighter jets, and over 1,000 U.S. soldiers conducted training together with Panamanians.

Due to the Panama Canal port acquisition case not yet being clarified, let's continue to see what developments may arise in the future.

This article by CNBC reporters takes a boat tour of the Panama Canal to gain a deeper understanding of why Trump insists on reclaiming the canal rights. It first appeared in Chain News ABMedia.