Chinas Retaliation Over Panama Canal Sparks Criticism from US and Latin American Countries

US Officials Report China Detaining Nearly 70 Panamanian-Flagged Ships

The US Federal Maritime Commission has confirmed that nearly 70 ships flying the Panamanian flag have been detained by Chinese authorities in response to a Supreme Court ruling on the Panama Canal. The ruling, made by Panama’s Supreme Court in late January, annulled contracts allowing a Hong Kong-based conglomerate to administer certain ports on the canal.

In a joint statement released on Tuesday, Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States expressed support for Panama and criticized China’s economic retaliation. The countries stated that China has imposed “targeted economic pressure” on Panamanian-flagged ships following the court ruling.

According to US officials, China detained the nearly 70 ships in March, exceeding historical norms. The US Secretary of State, Marco Rubio, stated that Washington is “deeply concerned” by China’s actions and stands in solidarity with Panama.

US Federal Maritime Commission head Laura DiBella noted that Beijing’s detention of Panamanian ships has repercussions for both Panama and the US. She stated that these actions could result in significant commercial and strategic consequences to US shipping.

The dispute began when a Hong Kong-based conglomerate lost a legal dispute over the management of ports on the Panama Canal. The company, CK Hutchison, had administered certain ports under contracts deemed unconstitutional by the Supreme Court.

In addition to targeting Panamanian-flagged ships, China has also retaliated against other shipping giants, including Maersk and Mediterranean Shipping Company (MSC), whose subsidiaries were granted 18-month contracts to administer the Balboa and Cristobal terminals. Chinese shipping giant COSCO has suspended operations at the Balboa terminal.

CK Hutchison is pursuing international arbitration against the government of Panama and seeking over $2 billion in damages. The dispute highlights the growing politicization of maritime trade, with states increasingly using shipping as a means to exert influence and pressure other nations.

Source: Al Jazeera