Panama’s role in the “New” Cold War with US/CHINA.
- By : James Bryson
- Category : Canal, Energy/Infrastructure, Human Interest, Infrastructure, International Relations, Politics, World Events

Less than two months have passed since the arrival of the United States ambassador to Panama, Kevin Marino Cabrera, and the first meeting with the Panamanian government is already underway.
This Thursday, during President José Raúl Mulino’s weekly press conference, he responded to the statement from the US embassy regarding the installation of communications towers in the country, paid for by Washington, which would replace others previously installed by the Chinese company Huawei.
For the first time, the president described the embassy’s statements as “unilateral” and questioned the diplomat for commenting on Panama’s internal affairs. “I ask the United States Embassy to refrain from making public pronouncements regarding decisions that are solely made by the Panamanian government,” he responded to a question from La Estrella de Panamá on the matter.
The statement was published a day earlier on the embassy’s website. It details the efforts the Americans are undertaking to counter what they call “malign Chinese influence in the hemisphere.” It mentions the installation of towers in 13 locations across the country and the replacement of equipment provided by Huawei, one of the Chinese technology giants targeted by President Donald Trump’s administration.
Security Minister Frank Ábrego, who explained the background of the project at Mulino’s request, said it was launched with Panamanian resources in 2017, as part of a coordination effort with the National Border Service (Senafront) in the Darién province and the eastern region of Panama. He explained that it was initially carried out with the US company Contel and included other equipment purchased by the Ministry of Security, but later rejected by Washington, citing a risk of being spied on.
“They object to the project on the grounds that the security of their technological equipment is at risk of being listened to or transmitted, because the network being installed did not meet U.S. military security requirements,” explained Ábrego, who acknowledged that the towers, paid for by Washington, would be replaced at a cost of $8 million.
Ábrego stated that the program “is not bad,” although he reiterated Mulino’s annoyance at the unilateral disclosure of the project, which neither Senafront nor the Ministry of Security had previously published.
A few hours later, Ambassador Cabrera responded to the president, stating that everything he had done was done with the authorization of the Panamanian government.
“We have all the authorizations from Panama; no one has said we’re changing the antennas alone. We’re working with the Ministry of Security, with Minister Ábrego, and the president. Every decision we’re making, whether this or the memorandum of understanding, is with Panama’s authorization,” the diplomat stated during a meeting with local authorities in the province of Veraguas.
Trump’s rise to power deepened pre-existing tensions with China, a country with which he faces a bitter geopolitical dispute, which has taken shape in recent months as a tariff war and heightened tensions over dominance of global spheres of influence.
In the case of Panama, pressure from the White House has increased since December 2024 with unsubstantiated accusations of alleged “interference” by the Chinese government in the administration of the Canal and its ports. This was hammered home in the rhetoric of Trump and his highest officials, who did not rule out the use of force to wrest control of the interoceanic waterway from Panama, which returned to Panamanian hands after more than 96 years of protests and the entry into force of the Torrijos-Cartes Treaties (1977).
A narrative that sparked outrage in Panama and criticism of the government; something that hasn’t budged Washington’s position one iota. It was reiterated yesterday by Secretary of Defense Pete Hegseth, who, in a congressional hearing, despite persistent questions from members of Congress, refused to rule out a possible armed intervention against the country.
Mulino’s complaint went beyond the embassy’s diplomatic “slip” and took a stand on the Cold War raging between the two powers. “Let them fight their own battles in Washington or Beijing, but not in Panama’s backyard. Respect that Panama is not part of any kind of bilateral conflict with China,” he maintained.
The president insisted that the country should not be drawn into an international conflict in which “we have no stake.”
These statements contrast with Panama’s diplomatic approach this year, marked by a strong alignment with the United States.
This includes Panama’s withdrawal from China’s Belt and Road trade initiative, following Secretary of State Marco Rubio’s visit in February. Likewise, the signing of the memorandum of understanding with the State Department in April, which, according to international law experts, opens the door to the establishment of military bases, which would represent a violation of sovereignty and the Constitution. The government vehemently denies this, maintaining that these are merely “administrative agreements” and do not harm the country.
Likewise, Panama’s inclusion in Trump’s anti-immigrant policy with mass deportations and the signing of an agreement signed by Canal Minister José Ramón Icaza.
The latter, a document of which only the English version is known, is interpreted by the United States as a “mechanism” that grants its ships “free” passage through the Canal, contrary to the Neutrality Treaty. A thorny issue that the government also denies, and whose scope is still unknown.
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