Hegseth Says China’s Military Presence in Western Hemisphere Is ‘Too Large’

US Secretary of Defense Pete Hegseth attends the Central American Security Conference (CENTSEC25), organized by Panama and the US Southern Command, in Panama City on April 9, 2025. (AFP)
US Secretary of Defense Pete Hegseth attends the Central American Security Conference (CENTSEC25), organized by Panama and the US Southern Command, in Panama City on April 9, 2025. (AFP)
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Hegseth Says China’s Military Presence in Western Hemisphere Is ‘Too Large’

US Secretary of Defense Pete Hegseth attends the Central American Security Conference (CENTSEC25), organized by Panama and the US Southern Command, in Panama City on April 9, 2025. (AFP)
US Secretary of Defense Pete Hegseth attends the Central American Security Conference (CENTSEC25), organized by Panama and the US Southern Command, in Panama City on April 9, 2025. (AFP)

US Secretary of Defense Pete Hegseth on Wednesday focused again on China's presence in the Western Hemisphere, one day after calling the world power a threat to the Panama Canal.

Speaking at a regional security conference, Hegseth said that China-based companies were controlling land and critical infrastructure in strategic sectors.

“China’s military has too large of a presence in the Western Hemisphere,” Hegseth said. “Make no mistake, Beijing is investing and operating in this region for military advantage and unfair economic gain.”

He called on the region’s governments to work together to deter China and address threats posed by transnational drug cartels and mass immigration.

Hegseth was speaking a day after meeting Panama's President José Raúl Mulino and touring the Panama Canal. The two countries agreed to step up security coordination and appeared to say they would work toward a way to pay back fees that US warships pay to pass through the Panama Canal.

The visit comes amid tensions over US President Donald Trump’s repeated assertions that the US is being overcharged to use the Panama Canal and that China has influence over its operations — allegations that Panama has denied.

Shortly after Hegseth and Mulino met, the Chinese Embassy in Panama criticized the US government in a statement on X, saying Washington had used “blackmail” to further its own interests and that who Panama carries out business with is a “sovereign decision of Panama ... and something the US doesn’t have the right to interfere in.”

The concern about China's influence over the waterway was provoked by Hong Kong-based consortium CK Hutchison holding a 25-year lease on ports at either end of the canal. The Panamanian government announced that lease was being audited and late Monday concluded that there were irregularities, which CK Hutchison denied in a statement Wednesday.

CK Hutchison has already announced that it would be selling its controlling stake in the ports to a consortium including BlackRock Inc., effectively putting the ports under American control once the sale is complete.



US Imposes Iran-Related Sanctions on Third China ‘Teapot’ Refinery, Port Terminal

 A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. (Reuters)
A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. (Reuters)
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US Imposes Iran-Related Sanctions on Third China ‘Teapot’ Refinery, Port Terminal

 A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. (Reuters)
A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. (Reuters)

US President Donald Trump's administration on Thursday imposed sanctions on a third Chinese independent - or "teapot" - oil refinery, and port terminal operators in China for purchases of Iranian oil.

The US Treasury designated the Hebei Xinhai Chemical Group refinery and three companies for operating a terminal at Dongying Port in Shandong Province. It said they had purchased or facilitated the delivery of hundreds of millions of dollars worth of Iranian oil.

It was the latest independent Chinese refinery targeted by the Trump administration after it re-imposed a policy of "maximum pressure" that aims to cut off Iran's export revenue to pressure Tehran into a deal to curb its nuclear program and stop the funding of militant groups across the Middle East.

"So long as Iran attempts to generate oil revenues to fund its destabilizing activities, the United States will hold both Iran and all its partners in sanctions evasion accountable," the US Treasury said in a statement.

Previous sanctions imposed on two small Chinese refiners for buying Iranian oil have created difficulties in receiving oil, leading them to halt purchases of crude and sell product under other names, sources familiar with the matter said.

Those sanctions have also begun to deter other, larger independent Chinese refiners from buying Iranian crude, three of the sources said.

Iran's UN mission in New York and China's embassy in Washington did not immediately respond to requests for comment.

The companies Treasury designated for operating the port terminal were Baogang (Dongying Donggang) Logistics and Warehousing Co, Ltd, Shandong Jingang Port Co, Ltd, and Shandong Baogang International Port Co, Ltd.

Treasury said the companies operate a terminal in Dongying Port that has received more than one million barrels of Iranian oil from shadow fleet tankers.

The sanctions block US assets of those designated and prevent Americans from doing business with them.