The Panama Canal isn’t just a marvel of engineering—it’s a chess piece in a much bigger geopolitical game. 

Last week, US Secretary of Defense Pete Hegseth made headlines when he declared the United States would "take back the Panama Canal from China’s influence."  

“China does not operate this canal,” Hegseth declared. “China will not weaponize this canal.” 

Before even taking office, Trump was spouting off about Chinese involvement in port operations at both ends of the canal.  

And now, with Panama pulling out of the Belt and Road Initiative earlier this year, it’s clear which side they’re choosing in this growing East-West divide.

And despite Hegseth’s posturing, there is no chance of a military conflict in Panama.

The US doesn’t want that; China doesn’t want that; Panama certainly doesn’t.  

I’ve discussed at length why Trump’s claims about the Panama Canal and China’s influence don’t hold water.  

As I explained in a recent episode of The Expat Money Show, I firmly believe that Trump is “marking his territory” and reaffirming the United States' status as the dominant superpower in the region.  

This only reaffirms what we’ve known for years: Panama is a strategic powerhouse. 

Panama isn’t just some country caught between global superpowers.  

It’s a global hub that has the eye of the world’s top businessmen, savvy offshore investors, and even the leaders of the world’s greatest superpowers. 

Panama is geopolitically relevant, plays both sides diplomatically, and continues to stand out as one of the world's most secure, tax-efficient, and investor-friendly countries.    

If you're serious about building sovereignty for yourself and your family, now is the time to take Panama seriously. 

Speak soon,

Mikkel

PS. Come down and join us here in Panama for our next Fly ‘N Buy Real Estate tour, just a few weeks away from May 4-7. This tour will be slightly different from Hegseth’s, as you’ll be seeing some of the best real estate options Panama has to offer, get to shake hands with the developers, meet the community, and even start your residency if you so choose. These trips always sell out, so reserve your spot today and email Susan James from our team at trips@expatmoney.com if you have any questions.

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