The United States is once again sounding the alarm over China’s growing strategic influence, this time focusing on its increasing presence in the Western Hemisphere. During a recent visit to Panama, U.S. Defense Secretary Pete Hegseth voiced serious concerns about Beijing’s involvement near the Panama Canal, a critical global trade route that has long been under American watch.

The Newest Security Flashpoint: Panama Canal

“China poses an ongoing threat to the Panama Canal,” said Hegseth, who stressed that the U.S. and Panama will work together to safeguard this key waterway. His statement comes amid broader warnings that China is no longer simply building military dominance in Asia, but is steadily establishing global strongholds, including in Latin America.

This region — traditionally considered part of America’s sphere of influence — has become a new arena for geopolitical competition as Beijing pours investment and infrastructure aid into key Latin nations, often in proximity to strategic chokepoints like the Panama Canal, which sees roughly 6% of all global trade pass through.

Hegseth’s Broader Message: China’s Global Military Strategy

This warning isn’t Hegseth’s first. In November last year, he issued a stark assessment: China’s hypersonic missiles could destroy all U.S. aircraft carriers within 20 minutes, and Pentagon war games consistently show America losing to China, particularly in scenarios involving Taiwan.

“China is building an army specifically designed to destroy the U.S.,” he had said — and now, by referencing the Panama Canal, Hegseth underscores that the battlefield has expanded far beyond the Indo-Pacific.

China’s Global Military Expansion: From Africa to Latin America

Intelligence gathered by U.S. agencies shows a clear Chinese effort to build strategic bases and logistical hubs across Africa, the Middle East, and Latin America. These include:

• Djibouti: China’s first overseas military base

• Cuba and Argentina: Rumored locations of future Chinese military activity

• El Salvador: Possible site for a military logistics hub

• Panama: Proximity to key shipping infrastructure, now raising red flags

China has been launching more naval vessels than any other nation, significantly outpacing the U.S. in terms of ship production. Its growing naval strength supports ambitions beyond regional defense, extending to global power projection.

Hypersonic Missiles: The Game-Changer

One of the most pressing threats identified by Hegseth is China’s operational hypersonic missile capabilities. Unlike traditional ballistic missiles, hypersonic weapons travel at speeds exceeding Mach 5 and can manoeuvre unpredictably, making them extremely difficult to intercept.

China's DF-17 missile, already in service, is a hypersonic glide vehicle (HGV) that demonstrates this capability. Meanwhile, the U.S. remains in the development phase, raising concerns that it is falling behind in the next era of military technology.

These weapons could potentially neutralize aircraft carrier strike groups, a pillar of U.S. global naval dominance. Hegseth’s remark about “20 minutes” is more than symbolic — it highlights the vulnerability of American assets in a hypersonic confrontation.

Military Comparison: US vs China in 2025

Despite the U.S. still holding overall global military superiority, the gap is narrowing rapidly in certain critical areas. According to data from the Stockholm International Peace Research Institute, here’s how the two giants currently compare:

• Defense Budget: The U.S. spends $916 billion, over three times more than China ($296 billion). But actual Chinese spending might be higher due to lack of transparency.

• Personnel: China has nearly 2 million active military personnel, compared to America’s 1.35 million, indicating a focus on manpower-heavy operations.

• Nuclear Arsenal: While the U.S. still leads, China’s nuclear capabilities are expanding fast, with projections suggesting it may reach parity with the U.S. and Russia by the end of the decade.

• Naval Strength: China now has the largest navy in the world by ship count (~780 ships), compared to the U.S.’s ~490 ships, reflecting a maritime expansionist approach.

• Hypersonic Missiles: China’s operational readiness in this domain gives it an edge, while the U.S. remains in testing stages.

• Cyber Warfare: Both nations are advanced, but China adopts a more offensive posture, often launching cyber espionage and infrastructure infiltration.

US Countermoves to Chinese Expansion

In response to China’s rising influence near the Panama Canal and beyond, the United States has taken multiple strategic steps:

• Enhanced Military Cooperation: The U.S. has deepened ties with Panama, Brazil, and Colombia, reinforcing defense partnerships to contain Chinese influence.

• Infrastructure Scrutiny: Washington is now closely monitoring Chinese-backed infrastructure projects, especially those with potential military utility.

• Development Finance Alternatives: Through the U.S. International Development Finance Corporation (DFC), America is offering financial alternatives to Chinese loans, helping Latin American countries avoid debt-trap diplomacy.

• Hemispheric Security Push: Echoing the Monroe Doctrine-era mindset, the U.S. is encouraging collective security alliances in the Western Hemisphere, viewing China as a modern-day geopolitical challenger.

Bipartisan Concerns in Washington

Hegseth’s statements come at a time when bipartisan support in Washington is building around the idea that the U.S. needs to act swiftly to modernize its military. This includes:

• Accelerated research in hypersonics

• Increased funding for AI and quantum technologies

• Expansion of naval capacity and logistics networks

• Investment in cyber defense infrastructure

Lawmakers from both parties have expressed alarm over the speed at which China is closing the technological gap, particularly in areas that can determine the outcome of future conflicts.

Strategic Importance of the Panama Canal

The Panama Canal remains a linchpin of global commerce, with over 14,000 ships transiting annually, carrying about 6% of world trade. Any potential disruption — military, cyber, or infrastructural — could have disastrous effects on global supply chains.

With Chinese companies building ports, logistics centers, and infrastructure projects near the canal, the U.S. fears that commercial interests may be used as a cover for strategic leverage, potentially allowing Beijing to exert control or monitor military and commercial vessels.

Conclusion: The Globalization of the China Threat

What began as a regional rivalry in the South China Sea has now morphed into a global contest, with both superpowers vying for influence over key territories and technological domains.

Pete Hegseth’s stark warnings are a call to arms — not just for the Pentagon, but for allies, partners, and nations across the Western Hemisphere to recognize and respond to China’s increasingly global ambitions.

As the strategic balance continues to evolve, the Panama Canal may well become the next major flashpoint in the geopolitical contest between the United States and China.

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