The dramatic transformation of Latin America from a relatively nonthreatening geographical region to one that presents a clear danger, harboring the U.S.’s most significant rivals, continues at a worrisome pace. China’s involvement in the Panama Canal, and its construction of its own canal across Nicaragua, is a prime example.
Strategically, the ability to travel through the Western Hemisphere, bypassing the need for the lengthy and dangerous passage at the extreme southern end of South America provides an enormous advantage to whichever nation controls the canal allowing this to occur. The Panama Canal has been a vital asset to the United States, allowing mobility for its fleet. Its importance is understood by other nations as well, particularly China.
The Menges Project reports that “Currently the Panama Ports Company, a subsidiary of Hutchison Whampoa Ltd., has exclusive and extensive rights to control both ends of the Panama Canal. Hutchison Whampoa is a Chinese company owned by Hong Kong billionaire, Li Ka-Shing, who has strong ties with Beijing. Considering Li’s close ties with the Chinese government, it is highly plausible that Hutchison Whampoa has the potential to act as Beijing’s political agent and that their possession of the ports at either end of the Panama Canal constitutes a serious U.S. national security issue.”
Richard A. Delgaudio, who authored a book on the issue, notes that “..the takeover of the Panama Canal by Red China is a serious security threat to the United States.”
Beijing has even larger goals. Initial work on a larger canal, dug through Nicaragua, was begun in December. The $70 billion dollar project will take 14 years to reach completion in 2029. It will serve China’s navy well. Beijing’s rapidly growing fleet will outnumber America’s navy by 2020.
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According to a report in The World, “Two years ago Nicaragua put its sovereignty in hock by giving a concession of up to 100 years for a canal that could cost $40 billion-50 billion to Wang Jing, a Chinese telecoms magnate. …The next step will be a port a few miles inland big enough to process 500-metre-long ships with five times the container-carrying capacity of those that currently traverse the Panama Canal.”
Reviewing the project, the Diplomat notes: “As for the geopolitical implications, there has been much speculation about China’s intentions with the canal. China has active in Central America for years (even decades). It has been selling arms to Western Hemisphere states, while pursuing other initiatives to build military and economic relations… Clearly, this is a challenge to traditional U.S. pre-eminence in the Western Hemisphere…
“The canal may attract Chinese military vessels looking to protect Chinese commercial interests. China has recently published plans to grow its navy by 351 warships, surpassing the U.S. Navy in sheer numbers at least by 2020. Whether it plans to deploy its ships to waters around China or use them to expand its presence elsewhere, like Central America, is unclear. Still, combined with its infrastructure investment, traditional assumptions of U.S. primacy are facing their greatest challenge in decades – even in a region traditionally considered its backyard.”
Environmental objections to the Nicaraguan Canal project have also been raised. According to Matthew Shaer’s study reported in the Smithsonian “A New canal through Central America could have devastating consequences. The ramifications of the proposed route have environmentalists worried, and for good reason…The new canal and its infrastructure, from roads to pipelines to power plants, will destroy or alter nearly one million acres of rainforest and wetlands. And that doesn’t include Lake Nicaragua, a beloved 3,191-square-mile inland reservoir that provides most Nicaraguans with drinking water.”