U.S. Wants China Out of Latin America. Is that Even Possible?

Feb 25, 2026

Pedro Armada, Panama City–based risk consultant and managing partner of Armada Risk Consulting, analyzes U.S.–China rivalry in Latin America. He discusses Panama’s seizure of Chinese-operated ports and the operational headaches that followed. He examines U.S. pressure on Peru’s Chancay mega port and how deep trade ties and narrative battles make decoupling difficult.

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INSIGHT

U.S. Leverage Is Strongest In Dollarized Small States

The Panama Supreme Court ruling and swift government takeover signal U.S. leverage in small, dollarized states can be decisive against Chinese operators.
Panama moved to occupy Cristobal and Balboa, then placed APM Terminals and TIL as temporary managers while grappling with cranes, software, and worker payments.

INSIGHT

Tactical Port Wins Don't Undo Deep Economic Ties

Tactical wins like forcing out Hutchison may not translate into strategic success for the U.S. because Chinese economic ties remain deep and growing.
Pedro notes Chinese firms still build bridges, metro lines, and cruise terminals in Panama despite the port loss.

ANECDOTE

Influencer Reel Misrepresents Chancay Oversight

Pedro found a viral Panamanian influencer video misrepresenting Peru's Chancay port and its oversight as predatory and unregulated.
The court ruling in Peru actually highlighted oversight by the National Port Authority, Navy, and antitrust regulator.

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The Panamanian government formally took over the two ports operated by Hong Kong-based CK Hutchison this week at both ends of the Panama Canal. U.S. officials celebrated the move as part of their larger effort to expel China from the Western Hemisphere.

Washington has now set its sights on the Chinese-owned Chancay mega port in Peru.

But given the extent of Chinese engagement in Latin America, most notably the fact that the region does more than half-a-trillion dollars of trade annually with China, is it even possible for the U.S. to expel the Chinese?

Pedro Armada, a Panama City-based risk consultant who closely follows the U.S.-China rivalry in Latin America, joins Eric to discuss what happens next following the expulsion of CK Hutchison from the canal zone and what it means for the rest of Latin America.

📌 Topics covered in this episode:

• Panama's takeover of Chinese-operated ports • U.S. pressure on Peru's Chinese-built Chancay port • Trump's Western Hemisphere strategy toward China • Narrative battles and misinformation in Latin America • Trade ties that make decoupling from China difficult • Whether Beijing is waiting out U.S. political cycles

Show Notes:

The China-Global South Project: The Paradox of Panama's "Rule of Law": Hutchison Ports vs. Minera Panama by Pedro Armada: https://tinyurl.com/4vcta4tw
The China-Global South Project: Panama and the New U.S. Strategy to Counter China in Latin America by Pedro Armada: https://tinyurl.com/msspbmbw

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