The canal, which was once owned by the United States but was handed over to Panama decades ago, gives vessels a much shorter route between the Caribbean Sea and Pacific Ocean. While the two countries could end up resolving the issue,

Republicans hoping to thwart Beijing’s influence in Latin America urge the Panamanian government to cut ties with Chinese entities.

In recent weeks, when he was President-elect Donald Trump publicly said that Panama should return the Panama Canal to the United States, and he would not rule out using military force to reclaim it. At his presidential Inauguration on Monday Trump doubled down on saying that his new administration was going to take back the canal.