The big picture: Hegseth's comments following a meeting with Panama President José Raúl Mulino that the U.S. and Panamanian officials would "take back" the key trade route "from China's influence" built on previous warnings from Trump administration officials, and they drew a strong rebuke from Beijing.
- The first visit by a U.S. defense secretary to Panama in 21 years comes after President Trump has said Panamanian authorities should lower fees for U.S. ships to transit the canal or return its control to the U.S.
- Mulino has rejected accusations of Chinese interference but pledged his government would conduct an audit of Beijing-operated ports at the canal and share findings with the U.S. He said Panama wouldn't renew its deal with China over its Belt and Road building initiative.
