(LibertySociety.com) – China’s maritime expansion elicits growing concerns about U.S. national security and the need for a robust port infrastructure response.
At a Glance
- Strategic competition intensifies as China and the U.S. vie for influence in Latin America.
- China’s infrastructure investments in Latin America reach $286 billion.
- Concerns rise over China’s control of the Panama Canal and other key ports.
- U.S. Homeland Security examines potential threats from Chinese port investments.
China’s Growing Influence in Latin America
China’s engagement in Latin America, with economic, diplomatic, and geopolitical objectives, has surged in the past two decades. This includes significant investments in the region’s energy and infrastructure sectors. China’s trade with Latin America has skyrocketed from $18 billion in 2002 to over $450 billion in 2022.
Through its Belt and Road Initiative, China addresses infrastructure needs in developing regions, though concerns about “debt-trap diplomacy” persist. In addition, Chinese infrastructure projects often blend commercial and security purposes, prompting U.S. worries about sovereignty infringement. China’s Digital Silk Road investments, involving telecommunications and technology, further raise data privacy and cybersecurity concerns.
Port Infrastructure and National Security Risks
China’s state-owned enterprises, including CK Hutchison, secure stakes in multiple U.S. ports, amplifying national security risks. Concerns focus on the possibility of PRC-affiliated entities leveraging port operations for intelligence gathering and military purposes. The House Homeland Security Subcommittee on Transportation and Maritime Security’s hearing highlights China’s strategic port investments in the Western Hemisphere, spotlighting the potential for illicit activities and disruptions in U.S. military logistics and trade routes.
“This gives Beijing a strategic position over one of the world’s most important waterways and provides the [Chinese Communist Party] CCP with an opportunity to exert influence over commercial shipping, gather intelligence on American and allied vessel traffic, and potentially restrict the mobility of our navy in a time of crisis.” – Carlos Gimenez
China’s influence in the Panama Canal, including shipping fentanyl precursors and using surveillance technology to collect information, poses additional challenges. Discussions at Homeland Security hearings highlighted the cybersecurity threats to port infrastructure, underlying the increased reliance on digital logistics and the risk of espionage and sabotage.
On the Importance of Examining Chinese Influence in the Panama Canal
President Trump’s call for a thorough review of China’s increasing role and influence in Panama, particularly regarding the Panama Canal, is long overdue. The Canal is not only a vital commercial artery for…
— Jason Ian Poblete (@JasonPoblete) December 28, 2024
U.S. Countermeasures and Strategic Responses
The U.S. aims to thwart adversaries’ control over critical infrastructure through measures like a Chinese port buyback program and removing Chinese equipment from ports. Emphasizing collaboration, Davis from DHS’s Maritime Sector Coordinating Council lauds the successful exclusion of LOGINK, a Chinese-developed software, due to security risks. Furthermore, Panama’s decision to audit Hutchison port concessions and not renew China’s Belt and Road infrastructure program signals regional efforts to counterbalance China’s influence.
“Halting, disrupting trade in a place like that would not be very difficult. I think we’ve seen in other cases where ships get stuck in say, the Suez Canal––global trade really takes a hit. So, I think there are a number of things they could do to hinder trade, such as putting a ship in the canal and not letting other ships go through. So, there’s the economic dimension and then there is the military dimension in the event of a crisis or war. Hindering U.S. naval vessels––that could make it more difficult for the United States to project military power where it needs to go.” – Kroenig
Efforts to promote good governance and leverage cultural linkages with Latin American countries remain crucial. As China expands its reach, strategic vigilance and proactive measures will be key to safeguarding U.S. interests and maintaining stability within the region.
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