U.S. Defense Secretary Pete Hegseth has once again turned the spotlight on China’s growing influence in the Western Hemisphere, warning that Beijing’s footprint near strategic infrastructure — most notably the Panama Canal — poses long-term national security risks.
“China poses an ongoing threat to the Panama Canal, but together the United States and Panama will keep it secure,” Hegseth said during a recent visit to the region. His comments reflect rising concerns that China is not just investing in military technology and regional dominance in Asia, but quietly expanding its strategic presence across key global chokepoints — including in America’s own backyard.
Hegseth’s comments follow his blistering assessment in November last year, where he declared that China’s hypersonic missiles could destroy all US aircraft carriers in just 20 minutes, and the US “loses to China to every war game” run by the Pentagon.
Those remarks sent shockwaves through the U.S. defense establishment, sparking calls for urgent military modernization. Now, by tying China's threat to the Panama Canal, Hegseth is making clear that the Chinese challenge is no longer limited to the Western Pacific.
“China is building an army specifically designed to destroy the U.S.,” he said then — and recent comments suggest he believes that effort extends across hemispheres.
Hegseth’s broader warning
Hegseth’s warning about Panama Canal is part of a broader message, that China’s military strategy is now global. Recent intelligence assessments by the US claim that Beijing is pursuing strategic basing opportunities in Africa, the Middle East, the South Pacific, and Latin America.
This growing footprint comes as China launches record numbers of naval vessels annually; expands overseas bases (e.g. Djibouti and rumored interests in Cuba and Argentina); and increases investments in cyber, space, and AI warfare. Meanwhile, rumours persist of China seeking a military logistics hub in El Salvador.
When Hegseth made the blasting assessment in November last year, he had also warned that war games repeatedly show the US losing in direct conflict simulations with China — particularly over Taiwan. His remarks in Panama are a continuation of that message: the battlefield is no longer just in the Indo-Pacific.
Hypersonic threat
Hegseth’s reference to China’s hypersonic missile capability comes amid the ongoing reassessment of America’s strategic posture in the Indo-Pacific, as well as increasing bipartisan concern in Washington that the US is falling behind Beijing in key areas of modern warfare – particularly hypersonic weapons, artificial intelligence and cyber operations.
Hypersonic weapons, which travel at speeds exceeding Mach 5 and can manoeuvre unpredictably mid-flight, are seen as game-changers in modern combat. China’s DF-17 missile, equipped with a hypersonic glide vehicle, has already entered service, and Beijing continues to invest heavily in next-generation systems such as the Starry Sky-2.
These weapons are particularly concerning for U.S. naval dominance, as aircraft carrier strike groups — once considered untouchable — could be rendered vulnerable in a hypersonic scenario. Hegseth’s “20 minutes” remark is symbolic of that strategic shift: the idea that the US Navy could be decimated before it can even respond.
How US and China stack up militarily in 2025
As the US sounds the alarm over China’s ambitions, a closer look at the military balance reveals a complex and rapidly shifting dynamic. While the US retains global superiority in many areas, China has dramatically narrowed the gap – and in some domains, it has even overtaken America.
The latest data by Stockholm International Peace Research Institute reveals that:
• The US maintains the highest defence budget globally, spending over three times more than China, with USD 916 billion and USD 296 billion respectively. However, it must be noted that estimating the true value of Chinas military spending is very difficult, and alternate estimates are often much higher.
• China has the largest active military personnel count – nearly 2 million – reflecting its focus on manpower-intensive capabilities. US, on the other hand, maintains an active military personnel count of around 1.35 million.
• While the US possesses a significantly larger nuclear arsenal, China's stockpile is expanding rapidly, with projections suggesting it could reach parity with the U.S. and Russia by the end of the decade.
• China has the largest navy by ship count (approx. 780), emphasizing its maritime ambitions, particularly in the Indo-Pacific region. The United States, on the other hand, has around 490 ships.
• China has operational hypersonic missile systems, whereas the US is still in the development phase, indicating a shift in certain technological advantages.
• Both nations have advanced cyber warfare capabilities, with China adopting a more offensive posture.
America’s countermoves
To counter China’s growing reach in the region, the U.S. has taken several steps:
• Boosted military cooperation with Panama, Colombia, and Brazil
• Accelerated infrastructure screening of Chinese-backed projects
• Increased investment through Development Finance Corporation (DFC) as an alternative to Chinese loans
• Pushed for closer hemispheric security cooperation, echoing Cold War-era doctrines
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
