America has a problem. The Panama Canal has essentially become a Chinese property.

As I noted, “Panama joined China’s Belt and Road Initiative. It recently renewed a contract with Hutchison Ports, a Hong Kong based company, to manage the canal. The ports around the canal are also controlled by Chinese companies. China has built four bridges over the canal and controls much of the construction projects and the vital infrastructure in Panama. China for all intents and purposes controls the Panama Canal, the ports around it and the local infrastructure that makes international trade possible”

Secretary of State Rubio paid a visit to Panama and the government offered to not renew its links to the Belt and Road Initiative and ‘investigate’ some of the Chinese presence. While that’s better than the tough talk, it amounts to very little. The Belt and Road Initiative was particularly insulting to the United States and a clear violation of the treaty, but Hutchison remains the larger issue. And any failure to dislodge it is a crisis.

That’s why President Trump has been stepping up his rhetoric, but the question is whether there’s a deal to be made here or not. Legally, America is within its rights to reclaim the Panama Canal. I’m skeptical that that’s literally the plan. It’s likely going to come down to a deal that falls short of that and Trump is trying to make the best deal possible. And the best deal possible is for China to go home.