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China Detains Panama-Flagged Vessels Following Court Ruling on Canal Ports
China has intensified inspections and detentions of vessels flagged by Panama after a court granted the country control over ports at either end of the Panama Canal. These ports were previously operated by Hong Kong-based CK Hutchison. U.S. Secretary of State Marco Rubio condemned the actions as destabilizing to global supply chains.
Apr 8, 8:30 AM·2m read1 source
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Panama's recent court ruling has led to increased detentions of Panama-flagged vessels by Chinese authorities. The detentions occur under the pretext of routine inspections. This follows a Panamanian court's decision to grant the government control over the ports of Cristóbal and Balboa, located at either end of the Panama Canal and previously operated by Hong Kong-based CK Hutchison Holdings Limited.
The actions come after Panama's efforts to assert control over these strategic facilities. China has a history of commercial measures against countries that shift diplomatic recognition to Taiwan, including Panama's decision in 2017 to establish ties with Taiwan. The detentions affect international shipping, as Panama-flagged vessels are commonly used in global trade.
U.S. Secretary of State Marco Rubio addressed the situation in a statement.
“It destabilizes supply chains, raises costs, and erodes confidence in the global trading system. ... The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying.”
Rubio's comments highlight U.S. support for Panama's sovereignty. " These responses underscore concerns over the implications for regional trade and international relations. China's engagements in Latin America include infrastructure projects and trade agreements.
In Ecuador, the Coca Codo Sinclair hydroelectric plant, built with Chinese financing, has faced operational issues. In Peru, the Chancay port is under development by Chinese firms, raising questions about oversight. In Guatemala, trade barriers have been reported amid its diplomatic relations with Taiwan.
