A Chinese monument at the entrance to the Panama Canal was knocked down late Saturday on orders from the municipal government of Arraiján, in a move that ignited a political storm in Panama and drew a sharp response from Beijing. The demolition comes against the backdrop of U.S. pressure to curb China’s footprint around the canal and past threats by U.S. President Donald Trump to “take back” control of the waterway.
The structure was a paifang (an ornamental Chinese arch) built in 2004 at a lookout near the Bridge of the Americas, which spans the canal. Arraiján’s mayor’s office said it ordered the demolition because the monument had structural damage that posed a “risk.” But Panama’s president, José Raúl Mulino, publicly condemned the action on Sunday, saying there was “no justification” for what he called an “unforgivable act of irrationality,” and he ordered the monument restored in the same place, in coordination with Panama’s Chinese community.
China’s ambassador to Panama, Xu Xueyuan, called it a “dark day” for the roughly 300,000 Chinese-Panamanians and said it caused “great pain” to bilateral friendship. In a statement posted on X, China’s embassy demanded a thorough investigation and harsh punishment for what it described as illegal and vandal-like actions. Mulino also requested an immediate investigation into who authorized and carried out the demolition.
Local media videos showed members of the Chinese community arriving while heavy machinery dismantled the site, but police blocked them from reaching the lookout. The demolition reportedly affected not only the arch but also two lion sculptures; an obelisk at the site remained standing.
The incident lands in a sensitive geopolitical moment. Trump has argued the canal is effectively under Beijing’s influence because the Hong Kong-based conglomerate Hutchison Holdings operates two ports at either end of the canal under concession. Under U.S. pressure, Hutchison agreed to sell those terminals to a consortium led by U.S. firm BlackRock, a deal China views with suspicion. Chinese companies are also reportedly eyeing other port projects expected to go out to tender.
The Panama Canal, about 80 kilometers long, carries roughly 5% of global maritime trade. The United States and China are its biggest users. The canal was controlled by the U.S. from 1914 until 1999, when it was handed to Panama. Trump has demanded preferential conditions for U.S. vessels as part of his renewed pressure campaign.
