Marco Rubio, US secretary of state nominee, echoes Trump’s Panama Canal China concern


Florida’s Senator Marco Rubio, nominated by president-elect Donald Trump as Secretary of State, sharply criticised China’s global ambitions during his confirmation hearing on Wednesday, singling out Beijing’s involvement in the Panama Canal as a significant threat to US national security.

Wading into an issue that made headlines when Trump claimed last month that the canal was “foolishly” given to Panama, Rubio described the waterway as a strategic vulnerability due to Chinese influence, as state-linked Chinese companies currently operate ports at both ends.

The canal handles as much as 5 per cent of global trade and is vital to America’s regional military operations and economic interests.

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“I’m compelled to respect that an argument could be made that the terms under which that canal were turned over have been violated, because, while technically, sovereignty over the canal has not been turned over to a foreign power, in reality, a foreign power possesses it through their company companies,” Rubio said

“If [China] orders a company to shut it down or impede our transit, they will have to do so,” he added.

Completed by the US in 1914, the Panama Canal remained under its control until being transferred to the Panamanian government in 1999 as part of a bilateral agreement signed 22 years earlier.

The waterway has long been an important part of Washington’s economic power, as more than 70 per cent of the ships transiting it every year are tied to US trade, and Rubio’s concerns align with Trump’s recent rhetoric on the issue. This has included a controversial proposal to repurchase or even take the canal by force, a move he claims would bolster US economic and military security.

House Republicans recently introduced a bill that would allow Trump to buy the waterway, citing Chinese investments in Panamanian infrastructure as a growing threat.

China’s involvement in the Panama Canal dates back to 2016, when a Chinese vessel owned by COSCO first crossed the expanded waterway. Landbridge Group acquired control of Margarita Island, Panama’s largest port on the Atlantic side, that same year in a deal estimated at around US$900 million.

Chinese interests expanded further in 2018 through a consortium led by the China Harbour Engineering Company and the China Communications Construction Company to construct the canal’s fourth bridge.

With an estimated $1.4 billion contract at the time, the transaction was deemed “the fifth most important project in the history of the country” by then-president Juan Carlos Varela.

In addition, a subsidiary of Hong Kong-based CK Hutchison Holdings manages two ports located on the Atlantic and Pacific entrances to the canal, respectively.

“China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe,” Representative Dusty Johnson, a South Dakota Republican and one of the co-authors of the purchase authorisation bill said in a statement last week.

Rubio tied the issue to what he described as “the defining challenge of the 21st century” – countering China’s growing influence globally.

He also condemned Beijing’s “violation” of Hong Kong’s autonomy, which he said had transformed the financial hub into a “tool for advancing China’s interests.”

The Florida Republican accused China of breaking promises made under the 1997 handover agreement with the United Kingdom, adding that Hong Kong’s sweeping national security law has rendered it an inhospitable environment for international business.

“I think we have to call it for what it is: the notion that Hong Kong is now a semi-autonomous entity that operates within China’s system,” Rubio noted. “Its independence for the decisions they make, is a complete work of fiction.”

He also called for reducing America’s dependence on China for raw materials and medicine, and emphasised the need to counter Beijing’s more aggressive naval activities in the South China Sea, saying that while the One China policy has been respected across several administrations, but also stressed the importance of “national defence” in the Taiwan Relations Act.

Senator Marco Rubio testifying on Wednesday. Photo: AFP

“We’re not going to pressure Taiwan in any arrangement ... We make no commitment to not helping them in their national defence ... And frankly, we are going to do everything [to] reject any effort to coerce, intimidate and/or forcibly drive Taiwan to do whatever China wants them to do,” Rubio promised.

Like most other Western countries, the US does not recognise Taiwan as an independent country, though Washington is committed by the law to support the self-governing island’s defence capability.

The senator said he does not intend to change Taiwan’s status, but will advocate for Taiwanese participation in international organisations. He also warned Beijing about recent military escalation in the region.

“If [the Chinese] want to stabilise the relationship [with the US], they need to stop messing around with Taiwan and the Philippines,” Rubio said.

The testimony highlighted his well-established reputation as a China hawk. As a senator since 2011 and a member of both the Foreign Relations and Intelligence Committees, the 53-year-old Floridian has consistently opposed Beijing’s policies.

Throughout his Senate career, Rubio has been a staunch critic of China’s human rights record. He co-sponsored the Hong Kong Human Rights and Democracy Act of 2019, which sanctioned officials responsible for undermining the city’s autonomy, and the Uygur Forced Labour Prevention Act in 2021, targeting imports tied to forced labour in Xinjiang.

Following Beijing’s passage of the Hong Kong national security law in 2020, Rubio also championed the Hong Kong Autonomy Act. The legislation sanctioned officials from mainland China and Hong Kong over their alleged roles in undermining the city’s autonomy under the Basic Law.

Rubio’s work on these issues earned him a spot on Beijing’s sanctions list in 2020, one of 11 US citizens targeted, including lawmakers Senator Ted Cruz of Texas and Representative Chris Smith of New Jersey, both Republicans. At the time, China’s Foreign Ministry accused the group of “egregious behaviour” concerning Hong Kong.

Despite being sanctioned – a move that prevents him from travelling to Beijing – Rubio said in a December interview with Voice of America that he is confident in his ability to “find some solution” for engaging with the Chinese if confirmed by the Senate.

His confirmation hearing was one of six held on Wednesday for president-elect Trump’s nominees. Among the other contenders were former Florida attorney general Pam Bondi for US attorney general, fracking executive Chris Wright for energy secretary, and John Ratcliffe, the former director of national intelligence, for CIA director.

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