A recent controversy caused by the demolition of a Chinese monument near the Panama Canal has highlighted geopolitical tensions surrounding this critical waterway.
Arraijan Mayor Orders Nighttime Demolition
On Saturday evening, December 27th 2025, Arraijan's municipal government ordered the destruction of an ornamental Chinese arch built in 2004 near Bridge of the Americas as a monument honoring Chinese contributions to Panama Canal and Twin Ocean Railway during 19th century. Mayor Stefany Dayan Penalba claimed structural damage posed a safety risk, so its destruction was ordered.
Mayor Penalba maintained her decision was made for technical and security considerations alone, without political motives or intent to cause offense to Chinese-Panamanian communities. She revealed plans for a park at this site promoting tourism with multicultural flair - positioning Arraijan as The Gateway to the West.
President Mulino Condemns Act as Unforgivable
Panama President Jose Raul Mulino quickly condemned the unwarranted demolition, condemning it as a deplorable act of irrationality with no justification. He immediately ordered restoration in coordination with Chinese community as well as an investigation into authorization and execution of nighttime operation.
Jose Ramon Icaza echoed President Arroyo's view, characterizing it as an act of atrocity committed in the darkness like some kind of criminal operation and emphasizing respect for Chinese-Panamanian residents. Former presidential candidate Jose Isabel Blandon described it as deplorable due to its suspicious timing between Christmas and New Years.
China Lodges Protests and Demands Action
Chinese Ambassador to Panama Xu Xueyuan described the event as a dark day that caused great harm to bilateral friendship and was an insult to 300,000 Chinese-Panamanians living there. Chinas embassy demanded an investigation and harsh penalties against what it considers illegal vandalism.
On December 29th 2025, Chinese Foreign Ministry spokesperson Lin Jian announced Beijing strongly opposed to Panamas decision to demolish a monument honoring Chinese contributions and lodged protests with them. China demanded a full investigation, correction of wrong acts, and removal of adverse effects due to this monuments role as a reminder of historic friendship and sacrifices by Chinese workers.
Geopolitical Tensions Over Canal Ports Increase
This incident takes place amid rising US-China competition over Panama Canal infrastructure. President Donald Trump has threatened to seize control, citing Hutchison Holdings operations of ports at both ends, which he blames on Beijing influence. Under pressure from Washington, Hutchison agreed to sell terminals to a BlackRock-led consortium but this deal may face potential risks after Chinas Cosco Shipping demands majority stake.
Panamas Foreign Ministry attempted to relocate the monument tribute, yet some fragments remain at its former location. Opposition leaders and the Chinese Association voiced concerns over this event which symbolizes Panamas shift away from US interests; Panama Canal handles 5% of global maritime trade with US and China being its top users.