The United States is overhauling its telecommunications infrastructure at 13 locations in Panama to replace Chinese telecommunications infrastructure with American technology.

The U.S. Embassy in Panama, led by U.S. Ambassador Kevin Marino Cabrera, announced the $8 million undertaking, which will be conducted in collaboration with Panama’s Ministry of Public Security.

It’s expected to take roughly two years and include the construction of seven additional communication towers across four provinces.

The initiative, announced Wednesday, aims to strengthen the capacity of Panama’s security forces to combat organized crime and drug, arms and human trafficking. It comes as the U.S. embarks on a broader “rip and replace” campaign targeting Huawei and ZTE gear deemed national security threats. That effort is backed by multibillion-dollar funding levels in recent federal budgets.

A vital center for global maritime trade, Panama controls the Panama Canal through which 6% of the world’s shipping passes. The canal’s strategic importance has drawn increasing investment from China in recent years, prompting U.S. policymakers to see enhanced telecommunications as essential to counterbalance.

Experts have warned that Huawei and ZTE equipment could be used for espionage due to links with China’s government. The U.S. and its allies have cited these concerns in banning sales of the company’s communications equipment.

Cabrera, a former Miami-Dade County Commissioner who was confirmed to his current post in April, has emphasized strengthening bilateral security cooperation in shoring up American vulnerabilities to foreign manipulation.

Since arriving in Panama — the first Central American country to enter and leave China’s massive Belt and Road infrastructure initiative — he has underscored China’s influence in Panama as a strategic concern.

Through the telecommunications revamp, Panama will gain control over its internal communications systems, which the Embassy said will strengthen “shared security and the U.S.-Panama partnership.”

“Under President (Donald) Trump’s leadership,” a statement from the Embassy said, “the United States is working to counter the malign influence of China throughout our hemisphere, making America stronger and more secure.”

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