On June 13, Panamanian President Jose Raul Mulino publicly urged the US not to involve his country in what he described as a “geopolitical conflict” with China, after the US embassy in Panama City announced a $8 million initiative to replace Huawei Panama telecom equipment with “secure US technology,” at 13 sites.
The project framed by the US as a security measure to counter the Panama Canal controlled by China and will be carried out in partnership with Panama’s Ministry of Public Security and is expected to take two years.
It includes installation of seven new towers across four provinces and aims to improve coverage and help combat organized crime, including drug and arms trafficking and human smuggling.
“The United States is working to counter China’s malign influence in our hemisphere, making the Americas stronger and safer,” addressed a US embassy statement.
The embassy emphasized that the Chinese Communist Party represents a threat to regional security, citing national security concerns as a key driver for the Huawei telecom equipment replacement.
5g in Panama Pushes Back Against US Narrative
President Mulino, however, pushed back strongly against the US’ Huawei infrastructure narrative, cautioning Washington not to use Panama as a proxy in its rivalry with Beijing, saying, “Let them fight their problem in Washington or Beijing, but not in Panama´s backyard.”
Panamanian Security Minister Frank Abrego further added context, explaining that it had been in development for nearly a decade. He noted that Panama had initially installed communication towers in the remote province of Darién in 2017 using its own funds.
The US later offered to finance the $8 million upgrade but requested modifications due to military-grade security concerns regarding the Chinese-made Huawei Panama equipment.
Tensions between the two nations have been simmering in recent months, particularly after US President Donald Trump publicly claimed that the Panama Canal had come under Chinese influence, suggesting the US should “take it back.”
While the US maintains that the Huawei 5G infrastructure in Panama overhaul is a matter of security, the country’s leadership views Washington’s move as nothing but a mere politically charged maneuver.
Global powers jostle for influence in Latin America, and Mulino’s message to both Washington and Beijing was respectfully unequivocal: Panama does not want to be caught in the crossfire.
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