This dark partnership is a threat to democracy in Panama and in neighboring countries, and is a direct long-term threat to Mexico and the United States. The massive smuggling of illegal aliens from the People's Republic of China into Panama's ports is a major security problem for both Panama and the United States. Government officials and private Panamanians expressed their concern about the massive illegal immigration flow from mainland China, and the corruption among Panamanian officials who permit it. The new Chinese are visible not only in Panama City and Colon, but throughout the country, with many small Chinese businesses springing up, with workers who do not speak Spanish, in communities throughout the country. Panamanian officials say that many Chinese aliens' final destination is the United States.
Corruption is viewed as the number one national problem by Panamanian voters.
It is reported that officials in the Balladares administration have made millions of dollars through the alien smuggling rackets. An emerging problem is that some officials in President-elect Mireya Moscoso's Arnulfo Party have been either involved in or privy to the alien smuggling system. It is essential that U.S. officials discuss this matter with President-elect Moscoso, who is scheduled to be inaugurated in September, to deter the ongoing alien racket. The scale of alien arrivals in Panama strongly suggests that Chinese communist officials are involved in the process, as well as the shipping companies. The Senate Committee also revealed that Hutchison Whampoa's subsidiary, HIT, has business ventures with the China Ocean Shipping Company, which is owned by the People's Liberation Army.