Additional Coverage:
- Rubio accuses China of ‘bullying’ for holding up Panama-flagged ships after canal clash (apnews.com)
U.S. Accuses China of Targeting Panama-Flagged Ships Amid Canal Dispute
WASHINGTON – U.S. Secretary of State Marco Rubio on Thursday accused China of engaging in “bullying” tactics by detaining or delaying dozens of Panama-flagged vessels, following Panama’s recent move to take control of two key ports on the Panama Canal from a Hong Kong-based company’s subsidiary. Although the detentions were generally brief, the U.S. sees the actions as part of a broader geopolitical struggle.
China has denied these allegations, while Panama finds itself caught in escalating tensions between the United States and China. Last year, former President Donald Trump accused Beijing of exerting undue influence over the Panama Canal, a vital international trade artery that the U.S. views as strategically significant for both commerce and national security. Trump has even suggested retaking control of the canal during his campaign.
“China’s decision to detain or otherwise impede Panama-flagged vessels engaged in lawful trade destabilizes supply chains, raises costs, and erodes confidence in the global trading system,” Rubio said via social media. “The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying.”
Data from Tokyo MOU, a regional authority overseeing port inspections in the Asia-Pacific, show that of the 124 ships held in Chinese ports for inspection in March, 92-or nearly 75%-were Panama-flagged. These detentions typically lasted from one to ten days before release. This represents a sharp increase compared to previous months when Panama-flagged ships accounted for a smaller share of detentions.
Responding to the U.S. accusations, Liu Pengyu, a spokesperson for the Chinese embassy in Washington, dismissed the claims as “repeated wrongful allegations” aimed at controlling the canal. However, Liu did not address the surge in Panama-flagged vessels held at Chinese ports.
The dispute follows Panama’s Supreme Court ruling in January that declared the concession held by Hong Kong’s CK Hutchison Holdings over the Balboa and Cristóbal terminals unconstitutional. Since then, Panama has arranged for APM Terminals, a Danish firm, to temporarily manage the terminals while a new contract is sought.
The U.S. government has intensified pressure on Panama and other Latin American nations to limit China’s influence in the Western Hemisphere, a region where former President Trump pledged to increase focus. The Trump administration’s involvement in Latin America has been notably robust, including a January military operation targeting Venezuela’s leader Nicolás Maduro.
The Federal Maritime Commission in Washington has been monitoring the situation closely. Laura DiBella, chair of the commission, commented, “Secretary Rubio’s statement highlights the disruptive effects of the government of China’s actions against Panama-flagged vessels. We are not aware of any other country in recent history conducting vessel safety inspections and detentions in a punitive manner.”
Chinese officials reportedly summoned Maersk representatives to Beijing for high-level talks, underscoring the diplomatic sensitivity. Meanwhile, Panamanian officials have downplayed the geopolitical implications, with Foreign Minister Javier Martínez describing the increased detentions as routine maritime procedures affecting multiple flags worldwide. “We want to maintain a respectful relationship with China,” Martínez stated.
Following the court ruling, China’s Foreign Ministry vowed to “take all measures necessary to firmly protect the legitimate and lawful rights and interests of Chinese companies.”
Experts warn that the dispute could have significant economic consequences. José Digeronimo, former president of the Panama Maritime Chamber, noted that Panama’s ship registry is a major source of government revenue, generating around $100 million annually. He explained that shipowners select registries based on the freedom of navigation they afford, and restrictions imposed by China could undermine Panama’s standing as a preferred flag state.
“If the world’s main exporter starts imposing restrictions for using the Panamanian flag, the last thing you’ll want is to have the Panamanian one,” Digeronimo said.
As tensions continue, the situation underscores the strategic complexities surrounding the Panama Canal and the broader contest for influence between the United States and China in the region.