Panama Boots China from the Canal
Peter Zeihan
5 min
China's position in the Western Hemisphere is based on one very stupid assumption: that the United States will actively keep the sea safe for Chinese shipping. The United States possesses the tools to reshape diplomacy and economic activity in the region.
Chapters
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0:00
Panama Canal Control Shift
Panama formally takes control of ports previously owned by China after a court ruling that the Chinese bribed their way into the contract. China's position in the Western Hemisphere relies on the assumption that the United States will actively keep the sea safe for Chinese shipping.
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2:18
U.S. Soft Power Success
The United States successfully reshaped Panamanian policy through legal action and diplomacy rather than military force or aggression.
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3:15
Future Regional Focus
Future diplomatic efforts will focus on Mexico, Ecuador, Peru, Argentina, and Brazil to counter Chinese economic influence. The Trump administration gutted key agencies like the National Security Council and State Department while expanding complex tariff regimes.
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4:20
Limitations on Chinese Pressure
China cannot pressure Latin American countries to go against their own courts without losing credibility in those nations.
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4:46
Diplomatic Tools Availability
The United States possesses the necessary tools to reshape diplomacy and economic activity in the region.
Key points
- 0:00
Panama formally took control of ports previously run and owned by the Chinese.
- 0:00
Panamanian courts ruled that the Chinese bribed their way into getting the contract.
- 0:00
The Panama Canal is the primary connection between the Pacific and the Atlantic.
- 0:00
China's position in the Western Hemisphere assumes the United States will keep the sea safe for Chinese shipping.
- 2:18
The United States reshaped Panamanian policy by getting a government to do it for you.
- 0:00
Maersk, a Danish company based in an ally nation, now temporarily operates the facilities.
- 3:15
Future diplomatic efforts will focus on Mexico, Ecuador, Peru, Argentina, and Brazil.
- 3:15
The Trump administration gutted the National Security Agency and the State Department.
- 4:20
China cannot pressure Latin American countries to go against their own courts.
- 4:46
The United States has the tools to reshape diplomacy and economic activity in the region.
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