The deal hands over more than 40 global ports owned by Hong Kong business magnate Li Ka-Shing to US asset manager BlackRock and Mediterranean Shipping Company.

The joint exercise reinforced preparation for threats to the security of the Panama Canal and other strategic infrastructure.

“China-based companies continue to control critical infrastructure in the canal area,” Hegseth said. “That gives China the potential to conduct surveillance activities across Panama.

China has long eyed the Panama Canal as a major competitor in global trade, and with the Nicaragua Canal project, it seemed ready to build a new route between the Pacific and Atlantic. This ambitious plan,

China has warned that it may block the sale of Hong Kong-based CK Hutchison's international ports, including one on either end of the Panama Canal, to a United States-linked consortium unless China's state-owned shipping giant, COSCO, is included in the agreement.