After a Panama Port Decision, Washington Faces Hard Choices on China and the Canal

An October 2025 file image of the Port of Balboa at the Pacific entrance of the Panama Canal in Panama City. Photo by MARTIN BERNETTI / AFP

U.S. government officials celebrated last week’s decision by the Supreme Court in Panama to nullify the contract for a Hong Kong-based company to operate ports along the country’s two coasts, leading into the canal zone.

A lot of people erroneously thought the ruling meant that the Chinese were being “kicked out of the Panama Canal,” which is definitely not the case…at least for now.

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by Eric Olander

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