The US accused China yesterday Thursday of holding Panamanian-flagged ships captive in its ports in retaliation for Panama’s regaining control of ports on either side of the canal that was recently managed by a Hong Kong conglomerate.
“China is now imposing rapidly increasing Panama-flagged detentions in Chinese ports under the pretext of government port inspections” that “far exceed” normal levels, the US Federal Maritime Commission (FMC) complained in a statement.
The inspections are conducted under “unofficial guidelines” and appear to be aimed at “punishing Panama” after CK Hutchison wrested control of its two ports, it added.
In late January, Panama’s Supreme Court ruled “unconstitutional” the contract that granted the right to operate the two ports to Panama Ports Company (PPC), a subsidiary of Hong Kong’s CK Hutchison, since 1997. These are two ports at either end of the Canal, that of Cristobal, on the Atlantic, and that of Balboa on the Pacific.
The strategically important 80-kilometre sea route carries about 5% of the world’s goods moving by sea.
This strategic 80-kilometre sea route carries about 5% of the world’s goods moving by sea.
The subsidiary, PPC, is demanding damages and interest worth at least $2 billion.
In 2025, US President Donald Trump repeatedly threatened that the US would “take back” control of the Canal, claiming that China had too much influence in Panama.
“Given that Panamanian-flagged ships guarantee the transport of a large portion of commercial goods destined for the U.S. and placed in containers, these actions could have significant commercial and strategic consequences” for Washington as it relates to maritime transport, always according to the FMC statement.
Presidents Donald Trump and Xi Jinping are expected to meet in Beijing on May 14day and 15. Their meeting is expected to be largely devoted to trade-related issues.
