The Geopolitics of a Ditch: Why US 'Wins' in Panama Always Come with a Chinese Shadow
THE ACTORS: Who is involved in this story? United States Government: Specifically, elements within the State Department and Pentagon concerned with regional security and economic dominance. Their stated interest is often national security and maintaining free trade routes. People's Republic of China: Its state-owned enterprises (e.g., COSCO Shipping Ports) are key players, along with its banking
institutions (e.g., China Development Bank). China's stated goal is trade and economic cooperation under the Belt and Road Initiative (BRI). Panamanian Government: Caught between two global powers, seeking economic benefit and national sovereignty. Other Latin American Nations: Countries like Nicaragua, which previously entertained mega-canal projects with Chinese backing, and those with existing
or potential Chinese port investments (e.g., Peru, Cuba, Chile). THE FUNDING: Where does their money come from? US Influence: Primarily through foreign aid (USAID), military assistance programs (e.g., International Military Education and Training), and direct foreign investment from US corporations. For instance, in 2022, USAID allocated $1.2 billion to Latin America and the Caribbean, often tied
to 'good governance' and 'security' initiatives (USAID, 2022). Chinese Investment: Loans and direct investments from state-owned banks and companies. China Development Bank and Export-Import Bank of China have committed over $140 billion in loans to Latin America since 2005, primarily for infrastructure and energy projects (Inter-American Dialogue, 2023). These often come with less stringent